Investment Q&A

Q: RE: Vermilion Energy results. In a previous answer to a question asked by Mike you said, "There was no word on the dividend". That makes it sound like the company avoided addressing their very high dividend. Not true..
They actually mentioned the high dividend many times today:
1- in the Q2 results
2- twice, answering 2 different questions during the conference call
3- and during a post results interview on BNN

Q: Could you please common Vet earnings and share reaction. The outage in France would seem to be a reasonable explanation of volume decreases.

Q: Good morning
As retirees, and still with a longer-term horizon, my wife and I own (and like) Suncor (integrated), Prairie Sky (no debt) and Peyto (low cost producer) for minimal risk; second, dividend income, and third, capital growth. Oil & Gas is 4% of our diversified portfolio. We plan to keep Suncor. I am considering Freehold Royalty, Tourmaline, and Ensign Energy Services as possible replacements for PSK and PEY.
Q1: Do you feel the stock price declines in the Canadian oil and gas sector represent investor capitulation?
Q2: I would appreciate your comments on the 3 stocks being considered. Would any of TOU, FRU or ESI better meet our investment objectives, compared to our current holdings, PSK and PEY?
Thank you for your advice on this.
Edward

Q: I have owned AKT.A:CA in the past and sold at a loss but have kept in on my watchlist. What do we need to see happen for it to be buyable and a potential timeline for that? Also wondering if a dividend cut is likely?

Thanks very much.

Q: Seems like fear has overtaken reason in Cdn oil stocks, would you take a position in the above names? All are very profitable even under present circumstances. Thanks.

Q: Please comment on SU's recent Q & u opinion of the co.The sector is terrible.Is it ok to add to my 2% position(p/p $42.59)?Txs for u usual great services & views

Q: What is the next report date for VET ? What are they expected to make if anything? Is the dividend safe? What is their cash flow & their debt as a %age? Is their payout ratio too high or fairly safe?
Thanks as always for your great information.

Q: Does the 50% investment in X-ELIO have an accretive affect on earnings?
Thanks
Bob Rose

Q: Hello 5i,
This is not a question, merely a comment from my perspective. I hold VET in two separate account and it is held for dividend income as opposed to looking for any significant capital gains.
On paper, my "losses" are substantial. However, in reality, unlike others who have sold, I have actually lost absolutely nothing - and I fully expect that by keeping this holding for the dividend (cut or not), should the time arrive when I do choose to sell, it will likely be because I am back in the black on it and will realize a gain. Meanwhile the dividend helps keep me "in the lifestyle to which I have become accustomed".
While it could happen that VET will go to Zero, be de-listed and cease to exist as a viable company, I am betting against it.
In a sector decline such as we are seeing in the Canadian energy space, I am not sure selling out at a significant loss is necessarily the only solution unless one can really benefit from the tax benefit on the loss - and in the case of VET, they have a great deal of exposure outside of Canada as well.
Anyway, I am happy to hold, collect the dividend and wait until the tide turns, which I am convinced it will do over some unknown period of time.
Just my perspective, nothing more.....
Cheers,
Mike

Q: whta's going on with VET, you seem to defend against dumping it
why this sudden price drop, i lost already a bundle since you argued a week ago for common sense/patience and against selling it,
pls no offense is meant,
your insight if possible
Art

Q: Good day team do you see this company getting shorted ,it keeps going down like a rocket ,i do not want to lose much more capital what alternatives do i have i know the sector is unlike here thanks Norm

Q: Apparently, by way of a Dutch auction, Encana will be buying back stock at a minimum price of USD $4.70; if so, why would anyone be selling at today's price of USD $4.16?

Q: Hi guys! In regards to energy stocks, the stage after 'fearful' I call the 'vomit stage' and thats where energy stocks are now. So shouldn't one buy when everyone is running for the hills? i.e encana and vermillion
thanks!

Q: It's been said that this name has the best balance sheet in the producer business - would you agree and if so, would that make a dividend cut less likely, come what may?

Q: Husky is in an unloved sector and has never been a preferred name in that sector for various reasons, but at $10.70 is it getting to a point where it should be considered over some of the usual go to names. The yield is decent and the balance sheet is good... not sure why it is getting punished so severely for a q that seemed within expectations.

Q: Hi 5i

Can't help notice the Q's on Canadian energy companies, and how the common theme leads me to think capitulation is close.

My questions is: Given the current political distaste for Canadian oil and gas, what would be your recommendation for an alternative investment in the energy sector? I already own BEP.UN, AQN, and ENB for disclosure, hopefully this won't instigate more sector Q's ;)

Please note my views on Canadian companies are severely restricted due to the duality of the current government.

Thanks,
Chris

Q: Is the takeover completion still expected in September? Also, would a dividend be expected with ex day in late Sept.?

Q: In 5i's opinion are the dividends on these 5 stocks sustainable and if so which 3 would 5i recommend to buy for income at the current prices.
Thank you.

Q: Has your view of PD changed since last year at this time on this company? You adverted to their debt level back then.

TD seems to hold a high opinion, just like last year.

Your thoughts.

Q: Your opinion of FEC please.