Investment Q&A

Q: I am a retired, conservative, dividend-income investor with a pension, CPP, annuities and hold the following securities (AD, AQN, ALA, BCE, BNS, CPG, CGX, ECI, FTS, PBH, RY, WCP, WEF, WSP, ZLB, XIT, RBC Cdn Equity Inc, Sentry Cdn Inc, Sentry REIT, and Fisgard Capital).

I plan to sell CPG and capture a capital loss, while at the same time put some or all of the proceeds towards another energy name, thereby increasing my dividend income. I have filtered the following names, using P/BV, D/CF, Beta, Div Yield => CJ, FRU, VET (I already own WCP, ALA, TRP).

Which do you see as a good fit with my other holdings? I am leaning towards CJ (more torque) or VET (due to the larger size). Are both of their respective dividend "safe"?

Thanks...Steve

Q: Hello Peter et al.

I am finally starting to see the bounce back in my Ithaca Energy investment. My average cost is now at $1.38 so I am still down on my original investment. As you probably know based on my previous question history I have been invested in this stock for a long period of time. I have been burned by the two delays in the upcoming Stella FPU start-up. The company has been wise with its hedges over the years and I know that this has prevented certain bankruptcy of the company in this oil industry downturn. Some hedges come off in July of this year and the remainder (6600 bbl/d) come off in July 2017. They have reduced their debt over the last year, currently at $670M and have survived their RBL redetermination at the end of Apr/16 with $100M of headroom. The production of Stella is said to add an additional 16K boepd to the production portfolio in late Sep/16. With the oil price now hovering around $50/bbl do you think there is still a huge risk to this stock? There has been a lot of rumours to a Delek take-out since they own about 10% of IAE at $1.05. I worry that they will take it out before Stella or after Stella start-up at a low premium and I will not get my potential return for waiting. It has been up approximately 85% YTD which is nice to see but I am hoping to see a $2.50 to $3.00 price after a full quarter of Stella production. This I would expect in 4Q 2016 results. My other lottery ticket Iona Energy never paid off. It went bankrupt in the end. What is your viewpoint on IAE-T? Seems to have a lot of volume in the UK but very low volume in Canada and I am surprised by this compared to past history. It use to be covered highly in Canada before the delays with Stella and when it was trading in the $2.50-3.00 range. Any possible reason for this in your opinion or is it still in the doghouse by Canadian oil analysts?

Thanks in advance

Brendan

Q: I am currently underwater 60% on a small position of NAL (1% of my portfolio). In your view, is NAL likely to survive this market cycle and are they worth holding onto? I very much enjoy the dividend, is this likely to remain? Finally, should I consider doubling down on my position for a long term hold?

Thanks for the service!!

DON

Q: Hi again,
Sorry the symbol I was asking about is HEU. I've copied the question again below.

Hi 5i, I think over the next 3-5 years oil is going to rally up. In doing some reading I found this etf. The management fee is definitely higher than I like. I'm not exactly sure how the 200% correlation works but it sounds like if energy goes up it would be a good thing. Could you give your opinion on this fund, also could you give some better options for getting some more energy in my portfolio if you know of some. Thanks!

Q: Hi 5i'ers,
is it time for XEG and what do you think of their prospects going forward as oil seems to be on the mend or is this a dead cat bounce?

Q: I'd like your opinion on the Toscana 2018 debentures and the company in general.
Thanks, Jason

Q: Greetings

I am presently without any exposure to oil and gas companies. To what extent do you think PKI might be a good place to re-enter the sector? Your most recent review was a tepid "B" so I am completely open to other suggestions you might have.

I am a retired conservative investor who has no need to "shoot out the lights" and realize that diversity is a good thing.

Thanks

Q: Hi,

Can you comment on Rock Energy - its gone down significantly, is there an opportunity to buy?

Thanks
Mike

Q: Could I please have your opinion on this company. It looks cheap to me, nice dividend, company has been buying back shares. A recent insider trade caught my attention although part of it looks like a swap with another insider.

thanks Tom

Q: Cathedral Energy Services (CET) and Enterprise Group (E)

The above two companies are two very small contrarian bets on a recovery in the energy market within my portfolio that are becoming smaller everyday. I am looking at consolidating the two holdings into a single one. Cathedral seems to have smart management, communicates well with its shareholders and is working on managing their balance sheet during the downturn. On the other hand, Enterprise has had some recent "C" suite insider buying. Should I maintain both positions, or consolidate into one? If I consolidate into one, which one do you like better and why?

Thanks!

Q: What are your thoughts on Pengrowth Energy (PGF) re management's level of excellence in a) capital allocation and b) operational efficiency and on the outlook for this sector as a whole.

Thanks

Q: Hi there

I know you don't cover Foreign stocks but wonder about your thoughts on Teekay. Based out of Vancouver and owner of oil tankers. Seems to be trading well below book value with good dividend. I have followed this for a while and know it's volatility but seems like it has found a base?

Much thanks

Q: i own 25000 shares of pmi. should i sell the stock after the dividend or is there a future for this stock. my cost is 15 cents thanks bill

Q: RE: Spyglass Resources and Parallel Energy Trust. Both of these small oil and gas producers appear to be in receivership, but news of their current status is hard to come by. Do you have any Idea if there is a possibility of any recovery for investors? Spyglass resources has been relisted as SGLRF I believe.
John

Q: Could you name some companies that will benefit from Transmountain pipeline

Q: I would appreciate your opinion on IMO. The stock did not do anything during the last 5 years.I have been holding it for years. I am now wondering if I should take the capital gain and move to something that pays a better dividend or tends to move upward.
Thank you
Serge Lacroix

Q: Good morning,

I understand that AMLP.US ETF that tracks the performance of a basket of energy infrastructure - oriented master LPs. Assuming that the oil prices will be up from here in 5 years and given that this etf currently pays out approximately 9% dividend, I would be interested to hear your view regarding the suitability of this etf in a RRSP in terms of downside risk and dividend sustainability. Thank you.

Q: I read with interest your recent article in the Post and was intrigued by the comment that research shows 90% of portfolio returns come from sector allocation - if a person wanted to take advantage of that, in a simple, easy to manage and inexpensive way (ignoring taxes for the moment) what would be your view be on an approach where one's equity component of their portfolio consisted entirely of a number of ETF's with each one of the ETF's focused on a particular sector, with a periodic (say quarterly) rebalancing? What specific ETF's would you suggest for such a portfolio? Thank you.

Q: I bought Painted Pony when it was around $4.50. So I am up on this investment. Is Raging River a more compelling stock for growth? Should I sell PPY and buy RRX. Should I hold long term on PPY? Or should I sell and go inot an entirely different energy stock? I view myself as a long term investor and want to hold stock for 5 to 10 years and hopefully watch them grow.

Q: Originally there was money offered.Has this changed,they say it will be operated independently.Will LVL still be listed on Canadian stock exchange.Tks 5I