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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: The Q3 results seemed fine, and guidance is positive so why did CJ get hit so hard today (down 12 per cent). Other oil names were down as well but nothing was down as sharply as CJ. Is there something that I missed? I like the 6 cent per month divvy and now that the debt has been dramatically reduced I feel CJ can continue to pay the divvy even if WTI drops down to the $70 ish range. Is there something here not to like than a recession pulling down demand for oil and subsequently price per barrel?
Read Answer Asked by Paul on November 10, 2022
Q: Parex is starting to look so tempting that I am considering it again despite an anti-oil government now in charge in Columbia. The dollar a year dividend now yields well over 5 per cent and I estimate that at least 20 per cent of PXT's market cap is covered by net cash on the balance sheet. I sold out of PXT in the high $20's before the Columbian elections but I promised to revisit is it went sub$20. It is now below hence the revisit. If the Petro government were to get really radical and decide to nationalize the foreign oil and gas (and mining for that matter) companies what kind of compensation might be paid (I am sure had some experience with that back in your Sprott days!!) I recall The Harper government getting a free trade deal between Canada and Columbia. Does a deal like that make nationalization much more difficult? I wouldn't waste your time on PXT but at sub $19 it is really tempting!!!
Read Answer Asked by Paul on November 10, 2022
Q: A follow up on y PXT question. On the stockhouse bullboard someone posted that the Gustav Petro (sounds more like a Russian that a Latino) government announced a new 10 per cent tax on 'exports' of Columbian crude. Is the oil that PXT extracts in Columbia used domestically or does it go for export? Or am I spitting hairs on the definition of the word export? Also the same post said that royality payments would no longer be tax deductible which is a drag on post tax profit but it can't be that big of a hit?
Read Answer Asked by Paul on November 10, 2022
Q: If a 2% tax is imposed upon oil and gas co. share buybacks, I assume that free cash flow will be directed toward debt repayment and dividend increases, with low debt companies raising dividends the most. Which O&G companies would you recommend, ( if my assumption is correct )?
Read Answer Asked by James on November 07, 2022
Q: RNW attributes much of the bad news in its Q3 results to lost income from and rebuilding expenses at Kent Hills, and given management's comments ("Rehabilitation is targeted to be completed by the second half of 2023 for the Kent Hills 1 and 2 wind facilities"; MD&A p14), it looks like these losses will continue for at least three quarters (possibly offset by cost-recovery from third parties and their insurers.) All that admitted, is there some forward-looking point at which RNW becomes attractive again?
Read Answer Asked by John on November 07, 2022
Q: Can you please rank the above utilities for Value. I used EV/EBITA data from Yahoo Finance and got this: NPI (8), BIP.UN (11), FTS (12.7), BLX (13), BEP.UN (15), NEE (26), AQN (28)
Thanks!
Read Answer Asked by Grant on November 07, 2022
Q: Hello:
Appreciate your ongoing honest and open approach. I know many of us find these challenging times. It feels like many "truths" of investing are no longer true. (i.e. how bonds respond to various market periods, whether preferred shares will ever behave as expected and how valuations of growing companies can swing so wildly.)
I need some help (I know, you can't personalize advice...) with SELL strategies. I am tempted to sell part of some holdings at all-time highs such as XOM. Is this ridiculous? If it's down 30% in January I will be kicking myself. I did NOT sell during very high valuations for a lot of growth stocks and I don't mind being patient while those recover but in hindsight selling half positions would have been a great way to solidify paper gains. I have held XOM for a long time as it was under water from my buy-in position, and it swings so widely on demand and oil price.
Is it crazy to be reducing positions in oil and gas now? Any SELL strategy thoughts appreciated.
Thank you!
Read Answer Asked by Marilou on November 07, 2022
Q: In your response to a question you stated "ENB. & FTS would also be highly correlated"
Can you explain? Did you mean if you owned ENB you don't need to own FTS?
Read Answer Asked by Peter on November 07, 2022
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