Q: Hi folks. I am very happy overall with how my portfolio is doing, due in large part to 5i. Thank you. However I do have one dog, which keeps hitting new lows. The good news is that it pays a nice dividend, and I only have a 1/3 postition. But I am tired of watching it sink... now down 47%. What are your thoughts... should I cut it loose? Unfortunately it's in my RRIF. David
5i Research Answer:
GXE is quite cheap on valuation, but it lowered its dividend last year, and its small size and weak momentum are not winning over investors in a somewhat shaky energy sector. Its balance sheet is fine and growth is expected this year. Generally in such situations we would be OK as long as production (what the company can control) is still rising. But in this case production has in fact declined. We would not see it as really worrying overall, but we do believe in momentum and it has none currently. We would be comfortable moving on here.