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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: You answered a question the other day about Cardinal Energy suggesting they were highly leveraged at 4x cash flow. Their presentation at $50 WTI and a .80c Cdn dollar, suggests they are just above 2x cash flow not 4X , that their POR is 40% regarding the dividend. Since 2014 and thru much lower oil prices they have kept that ratio between 31 to 49%, given the higher oil prices now it seems to be sustainable. WTI now exceeds their guidance as well as the CDN dollar at .77c they should be in fine shape on both counts. The company is looking at increasing amounts of free cash flow in 2018 given where WTI is today and the exchange rate, not to mention the WCS differential which is in their favour as well. Cardinal has one of the lowest decline rates in the industry so can spend less on maintaining or growing production as well. Those numbers you used look more like Bonterras- BNE then Cardinals. I don't understand where you are getting your numbers, please help me understand?
Read Answer Asked by Wyatt on November 02, 2017
Q: I am considering to re-enter the energy market. Of the four stocks here, CJ, WCP, VET and TOG, how would you rank them in terms of their potential combined returns (growth + dividends, and dividend sustainability). Thanks.
Read Answer Asked by Victor on November 01, 2017
Q: QST has really started to move in the past 10 days. Could we get your assessment of what is driving the move and how confident one should be with the firm. It almost looks like the stars are starting to align for it (higher oil prices, new government methane gas reduction targets, proven technology). If it reports a strong quarter, what is the upside? Would you complete a position in it now?
Read Answer Asked on November 01, 2017
Q: I used to own CJ and with the downturn in the energy market I sold all my O&G holdings along with CJ. I just noticed in the last week or so that insiders who already own substantial shares in CJ have been adding more company's stocks to their portfolio.

Can I used a horse betting analogy of "following the trainer to the betting window" here? I notice the company has already cut its monthly payout by half earlier this year (since 2/2017). Is this payout at a rather enticing level (still about 8%+) sustainable based on its current production level? Do you foresee further dividend cuts?

Thanks for your insight.
Read Answer Asked by Victor on November 01, 2017
Q: in an earlier question i asked about tax loss selling for rrx and you mentionned pxt and vet. I should have mentionned that I already own whitecap. in doing a little further research I noticed in another question you answered that you said whitecap could be a reasonable replacement for RRX. Wondering if this is still true and whether it makes a big difference which one is chosen
thanks for your great help
Joe
Read Answer Asked by joseph on October 30, 2017
Q: Hi peter and Team,
I have some ENF in my RIF A/C and loosing about 10%, am thinking to replace with a similar stock. Can you suggest one or two ?
Thanks as always,
Regards,
Tak
Read Answer Asked by Tak on October 30, 2017
Q: I have held these loss stocks in my well-diversified portfolio for many years. I am willing to wait for a turnaround and do not need the cash. Which if any would you recommend selling now if you consider holding them to be a lost cause. Thank you
Read Answer Asked by Harold on October 30, 2017
Q: I note Rosenberg’s article in the globe this morning in which, among other things, he likes energy stocks at the moment. Do u agree with his assessment and if so would u purchase individual stocks or an ETF and would u focus on producers or service providers and in which geographical area? Can you provide specific recommendations. Thx
Read Answer Asked by Patrick on October 30, 2017
Q: Hi Peter and team
I am down about 40% in both Peyto and Shawcor and would like to use as a tax loss. Could you please suggest one or two replacements. Thanks.
Gary
Read Answer Asked by Gary on October 27, 2017
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