Investment Q&A

Q: Your thoughts on the last quarter please?

Q: PHX has seemingly released just stellar results, why there are no market activities to reflect that? No buy or sells and no noticeable SP movements? Thanks.

Q: I've been eyeing Canadian Natural Resources especially light of a great 2022 and Q4. I'm underindexed on energy in our portfolio and if there was one single oil and gas company in north american to invest in for a mix of income and growth any other names you suggest and how does CNQ rank amongst those?

Q: THESE ETFS HAVE VERY ATTRACTIVE DIVIDENDS DO YOU THINK THE DIVIDEND IS REASONABLY SAFE,

Q: I have held ALA for many years, I have some cash to deploy in the account holding ALA. All my other holdings in that account have bounced to start 2023 with ALA the glaring exception who lost steam and gave back its gains. Good time to buy the dip on ALA and worst case I get the 3.7% div for the rest of 2023? You don't seem to be huge fans based on replies to other ALA questions. I don't see a huge downside if markets continue to be shaky and with the interest rate hike cycle hopefully nearing an end.

Q: How did you like the results. Still viewed as one of your favourites?

Q: Hi, I think, my question may have been lost due to time out. Capital Power has been bit of a disappointment, since we took a full 5% position with ACB of $50, in mid 2022. After reaching a high of $52-53, stock has been languishing around $41-$43 and does not seem to get any traction. I am aware that valuations in Utilities sector have been impacted, due to likelihood of higher interest rates for longer. But, CPX share price has lagged almost 10% more than its peers like FTS. Recent results also failed to inspire any confidence. Analysts are predicting lower power prices in Alberta, through 2024. Dividend yield of 4.75% seems to be the only solace.

Do you see any catalyst which could help recover stock price, over near term ? Or, it would make sense to take a capital loss (in taxable account) and reallocate funds to another sector ( e.g., Industrials - ATS/TFII ), which appears to have some tailwind. We also have a 6% position in FTS, in utilities sector and are underweight Industrials.

Thank You

Q: If you could give me your take on latest quarter I would appreciate it. Also, if you would comment on dividend stability that would be appreciated.

Thanks!

Q: Kindly comment on the CNQ results just released this morning. Thanks.

Q: I want to re-visit a question I asked previously (based on Eric Nuttall's appearance on BNN Bloomberg) and Lionel's input on it. I've reproduced those questions and answers below for reference.

To clarify, Eric was not bullish on natural gas, at least over the next year. What he was feverish on was heavy oil, and his top picks were the three companies above.

I had mentioned Tourmaline Oil which perhaps shifted the conversation toward natural gas, but I was really interested in your take on the heavy oil companies.

Do you share his enthusiasm about heavy oil? I'd appreciate if you could rank these companies. CVE seems the biggest but I sense he sees more potential in the other two which are smaller.



Q: Eric Nuttall was very bullish, almost feverish, on oil (represented by the companies above) while being down on natural gas. To what extent do you agree?

Asked by Kevin on February 27, 2023
5I RESEARCH ANSWER:
We like Eric and used to work right beside him (Peter answering). He is bright and gained lots of experience over the past 20 years. He showed a lot of guts in the oil crash when his fund dropped 70% in three months and fell to $20M in assets (he now manages more than $2B). The sector is very cheap, and vs past cycles corporate balance sheets are very strong. Certainly the lack of spending may results in higher prices over the next three years (depending on the economy). But...it will always be cyclical. The price of oil in fact is even down 14% from before the Ukraine war started. But we think some sector representation certainly makes sense. The TSX is currently at 17.4% energy. We might consider that a bit on the high side. In terms of natural gas, it can be very weather dependent, but we would be more bullish than Eric; the price has dropped so much this year, but it is also dependent on drilling, and the price drop is going to cause even less spending to be done on new gas wells.

Q: I am optomistic that Peter and Eric Nuttall are bullish on the gas sector, as in the 5i reply to Kevin's query (Feb 27). What are your views on XES? Technically, it looks like it has a huge runway to the upside ...Thanks....Lionel

5I RESEARCH ANSWER:
XES is the SPDR Oil and Gas Equipment & Services ETF. Certainly there is upside potential as oil and gas companies spend. However, there has been a trend in the industry towards dividends and buybacks, so spending this cycle may be less than in other periods. Still, the fund is up 38% in the past year, and its 35 holdings look solid. We would be OK owning this for sector exposure, with the understanding that it is always going to be cyclical.

Q: Peter; If I read their numbers correctly they’re only expecting $270M FCF in 2023- is this a miss ? Thanks
Rod

Q: Now that energy stocks are going out of favour, it's time to start looking at the what might be attractive from a valuation point. I'm looking for a US energy company (not XOM or CVX): what are your thoughts on DVN and PXD? Is one preferable or do you have another suggestion? Thanks.

Q: In which order would you initiate buys on these stocks? Do you like all three? I’m looking for a little growth and good dividend yield.

Q: Us again
Could we please have your top five dividend payers in Canada with a little expected growth.

thank you
Ken & Cindy

Q: Hi, Could you please comment on the quarterly/annual results released today., which appears to be strong. Company also seems to be committing to regular and special dividends through 2024, and returning 50-90% of FCF to shareholders !! Sweat !!! There has been so much pessimism about TOU and NG producers, recently. Do you expect the stock to recover and see better price action, over next 12-18 months ? Thanks

Q: Hi 5i,
As a follow up to a dividend question yesterday on PPL: apart from changing the dividend from monthly payout to quarterly, is the dividend also been switched to CAD dollars only? I hold company in taxable, US side of account as part of US dividend portfolio.
If the dividend is indeed being paid ONLY in CAD, can you recommend a replacement Canadian company of similar quality, similar yield that pays in USD? Any sector ok…
Tia,

Q: In a response to Cal yesterday regarding ENB you stated that the loss of Line 5 "would certainly be a materially negative event for the company". I am trying to determine if this should result in my cutting back on my full position of ENB (5%). So I would appreciate it if you could expand on what a "materially negative impact" means. Also, do you have an opinion on the likelihood that Line 5 will be shut down?
Thank you.
Note I thought I had sent this question yesterday but a tech glitch may have prevented it being sent.

Q: Hi Team,

Do you have any very recent updates on RNW?

Is this one a lost cause? Should I bail?

Thanks for your help.

Q: Hi 5i Team,
I have a small position of Emera cumulative redeemable preferred shares class E that trading at about 18.25$/share as per this morning. They had 4.5% per annum dividend payment so they have a 6.1% yield at current price.

I would like suggestions to diversify that part of my portfolio. (It's not a big weight in my portfolio but I would like some diversifcations options... Options could be other companies preferred, bonds, bonds ETF etc. since they are basically having similar behaviors in the current yield environment.

Thank you, Michel C

Q: What would be your top 5 US and Canadian Dividend Stocks with good outlook for growth as well.

Thanks
Tim