Investment Q&A

Q: Thanks for your service! Curious about the portfolio review you offer but couldn't find info on the website.

I currently have minimal exposure to the energy sector, and am thinking about dipping my toes in the water for about a 5% weight that could be added to if oil had another shock to the downside. I'm looking at adding a few lowest-cost larger-cap producers that would be the "last men standing" should oil stay at these levels for an extended period. What would be your choices for core holdings in the space?

Also, why do you think OPEC kept production level?

Thanks!

Q: Hi Guys,

I am a dividend investor and one of my rules in my portfolio management is to immediately sell any company that cuts it dividend without thought or question. I can repurchase the stock after a 60 day waiting period. This has helped in the past as the stock price usually keeps falling.

I own SGY and CPG in my portfolio in equal weight of 3% each. I am considering not using my "sell on dividend cut" rule as these stocks have dropped prior to a POSSIBLE dividend cut and may even rise if a cut is announced.

I would appreciate your comments.

Regards
John

Q: Amaya is off 21percent at the time I am writing this. Can AYA be bought at this level based on fundamentals.
Thanks

Q: Peter, only for the information file, I spoke with management at Surge this week. They told me the dividend is safe and they will protect it at all costs. They said they had prepared for this scenario in oil and would see there commitment on dividend through. Who do you believe, analysts or the boss of the company. I will take the boss of the company, Ken

Q: Is there any reason IT is getting hit almost twice as hard as AYA. I would think it would be the other way around. Thanks

Q: Comment only - Thank you for your comments re Amaya. As a holder I was panicked but appreciate the facts and insights you provide.
No reply necessary - Just want to say Thanks for a great service. Publish if you like.

Q: In the past you have liked this company. Do you think it is a good medium to long term hold. It touched $25 and now sliding back to under $20.

Q: Will these companies have to cut their dividend, it oil stays between 55- 65. For the next year or is the dividend safe . Dave

Q: EasyHome has fell 17% in 5 days. It's trailing PE is now 15.5. There is no news I can find, so I speculate it's due to tax-loss selling. Unless they lend to people in Alberta more than anywhere else? I have a half position at a 20% loss. Would you add to the position?

Q: There has been occasional reference to the oil patch increasing their use of drones. It would seem then that drones would immensely benefit the work that SYD is directly involved in. But as noted in your reply to Ruth, SYD isn't doing very well.
So I'm curious if PUR is using drones
and that is why its stock is doing so much better. Also do you know the management of SYD and what do you think of them?

I really enjoy your Q & A. Lionel

Q: Hello 5i team,

Can you please provide an update on NTB since your last comments Sept 12 and include any opinion you have on what effect on share value their revolutionary new drug, CaPre, may have as it enters Phase 3 clinical trials.

as always, thanks for all you do

Gord

Q: Good Morning 5 I Team

Doubtless you have a flood of emails regarding AYA. The news is scant but I would still appreciate your views and if you are surprised that AYA wasnt halted this morning. Also given the flood of selling this morning what are your recommendations?

Thanks in advance.

Phil

Q: Good morning
Is intertain group a buy this morning
Thank you

Q: I am holding a basket of energy, of which are underwater at present and would appreciate your comments on which to hold a which to sell. With the sales proceeds I will redeploy the funds into the "keepers" or alternately add a new holding(s) that you might feel will provide best opportunity for go forward hold.The holdings are BTE,POU,CPG,BNE WCP,TOU,SGY,TVE.
Thanks

Q: It seems oil investors are throwing the baby out with the bathwater,two companies in particular-WCP has 48%of its 2015 production hedged @ $98/barrel,SGY P.O.ratio is @95% and its drilling new wells with a payout of less then 1 yr.even at $60 oil according Dundee.I own both companies and am considering gradually doubling my position.A good idea?

Q: Tech is in free fall, but is the price drop warranted? There are three main commodities but nothing is really new: 1. Copper has been range bound, is currently on the low side, the strike at one mine hasn't effected operations, and a slow world economy is unchanged, 2. Zinc is fine, 3. Met coal is under pressure but that too is not new (management believes that excess supply is being worked off but will take some time).

Which leaves Energy, meaning the Fort Hills oil sands project. This does not start to produce until 2-3 years out and the capex remaining appears to be available. It's maybe a $3B project which is not excessive given Teck's size. The main partner is SU (safe).

On a price book it looks very cheap (below 0.5). Management believes liquidity and capital are strong. Also, it weathered 2008-09.

So why the free fall? At what price does it become a buy?

Thanks, Mike

Q: I currently do not have any exposure to the energy sector. I am starting to get attracted to the high dividends of some of the higher quality companies such as WCP. I am thinking of a pairs trade; shorting XEG and buying WCP long. This would allow me to collect the dividend but protect me on any further down side. Once the energy sector calms down and starts to behave rationally I could slowly take off the short position leaving me with a long position in WCP. What do you think of a strategy like this?

Thanks, Darcy

Q: I have read your responses to Amaya's recent investigations, but haven't been able to find a co-relation with Manulife. I understand that Manulife is also being investigated in relation to Amaya's purchase of PokerStars: how does it play into the scenario and what might be the repercussions for MFC? Thanks for your help.

Q: Hi Peter & comopany, I'm having a bit of problem here; maybe I'm having a senior moment. In answer to Donald's question, you said that ALA is partly utility and partly energy. In answer to Dennis, not only is ALA in energy but also ENB and TRP. If I remember correctly, you had previously put these (ENB & TRP) as utility. I'm not trying to be picky here; because, depending on your answer, is whether I'm heavily weighted into utility (which I'm comfortable with) or I'm more into energy than I thought. I noted that ENB & TRP behaved better than O & G stocks in the current downdraft. Thanks as always. Henry

Q: I have most of the stocks in your Income & Model portfolio, now I would like some US exposure, but do not have a US trading account. Would you suggest a US ETF, that I can purchase in Can$. Also being the Can$ is going down, would this be a good idea right now?
Thank you for this wonderful and informative service.