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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: ..with Husky pulling the plug on MEG how would you rank these companies as possible targets, or are there any others you think are attractive. thanks.
Read Answer Asked by Curtis on January 18, 2019
Q: If I read the news correctly Husky took up from tendered shares 50% of those outstanding at their bid price some $3 above todays price, and subsequent turnover is over 60 million. Assuming Huskey was a competent offeror an that the tendered shares were paid for what is to stop them acquiring the majority of the balance at todays much reduced price in the open market and would that be a competent and allowed strategy?
Read Answer Asked by Mike on January 18, 2019
Q: Good morning 5i Team

I'm getting myself up to speed on light oil versus heavy oil. WCS, which is a blend of bitumen and other Alberta oils is heavy oil. Canadian refineries for the most part can't process heavy oils (only about 100,000 barrels a day) so most is shipped to the US where refineries are optimized for the stuff. The general consensus is that more pipelines to US (not to tidewater) will allow more WCS to be shipped and will therefore aborb the additional supply that has come on stream recently.

My question is: With the US refineries already running at capacity, how can they absorb significantly more WCS?
Read Answer Asked by Peter on January 17, 2019
Q: Hello Peter, Ryan and Team,

I was lucky to pick up a decent amount of PXT on December 20, which means that it is now at a 6% weighting of my portfolio. PTX is my only Energy position other than ENB which is more of a utility.

Would you recommend trimming PTX and adding SU, or replacing PTX with SU, or leaving PTX and adding a 2.5% position of SU or do nothing? I like the momentum of PTX at the moment and with a good cash balance, 6x P/E and no debt, it looks like it should have more room to run.
Read Answer Asked by Wes on January 17, 2019
Q: Hi 5i: You recently answered my second question on MEG Energy - specifically that it was trading at approximately 13% below the value of the Husky offer. It doesn't seem that this has changed much in recent weeks - and I don't think Husky has raised their bid. I don't want to own Husky, so based on documentation sent by RBC Direct, I have to chose between, (a) selling the shares in the next few days or, (b) a cash option that reads "To receive C$11.00 for each share of MEG Energy Corp tendered, subject to proration." [This option is for "Non-Electing Shareholders (Non U.S.) only. I am Canadian, residing in Canada, and I hold the MEG shares in my RRIF.] Could you advise which option I should select? I don't have the data to calculate the proration amount. Your assistance would be greatly appreciated. Roland T.
Read Answer Asked by Roland on January 09, 2019