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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: After languishing in the 55 cent range for months, the stock price has recently increased. On March 9th it seems to have gone up to 71 cents, (18% rise) on double the normal trading volume. I can't see any specific news. Any ideas ? Is this a sector rally ?
Read Answer Asked by Don on March 10, 2016
Q: I am under water [$13.50] with WCP and getting conflicting views as far as meaningful recovery in the near future. Should I sell and use the fund elsewhere? If so I like to have your suggestion of a few other choices please. Many thanks, A.J. P. Burlington
Read Answer Asked by Joseph on March 09, 2016
Q: Hello Peter,
I am trying to decide between crescent point energy or tourmaline oil for 1 to 2 year hold. Also, what is driving the metal stocks like Teck and Hudbay minerals? Do you see this as a sustained rally or do you think it is simply a trade for now. Please let me know your thoughts. Thank you.
Read Answer Asked by umedali on March 09, 2016
Q: I own parex and rrx, want to add your top pick in smaller to mid oil and gas stock assuming oil goes to 50 by year end.would surge be it or whitecap or something else. This would not be a long term hold. Dividend not important.Dave
Read Answer Asked by david on March 09, 2016
Q: I own Surge Energy which is down 54% and presently represents 1% of my portfolio. I want to slowly build up this sector by starting to buy again into Surge but I thought I should also add another name and keep the 2 within the overall 5% range of the total. What other name would you recommend. Thanks. Gerry
Read Answer Asked by Gerry on March 09, 2016
Q: Could you please clarify the recent deal where Imperial Oil has sold its retail ESSO stations to various entitities, including PKI and ATD? In one news article, it seemed to suggest that PKI purchased all of the "On the Run" convenience stores and some of the gas stations. Howefer, in reply to a previous question, you stated that ATD had bought some of the gas stations but it would seem to me that they would want the convenience stores as well, so I am left wondering who purchased what.

Could also comment on how you see the acquistions affecting both ATB and PKI.

Thanks for the insight.

Paul F.
Read Answer Asked by Paul on March 09, 2016
Q: Going to buy either cnq or su soon please help me decide! Have read all the reports and they both look good.
All the best Harry
Read Answer Asked by harry on March 09, 2016
Q: You answered a question about BDI only a week ago, but earnings were released since then. Has your outlook changed? You stated the company was "...likely the strongest and best name in its sub sector..."
As per the 2015 results, BDI reduced capex and general expenses and they also paid down some debt. Payout ratio for 2015 was 43% and should be similar for 2016 since they reduced the dividend last quarter.
The stock fell again today with the pullback in oil and I'm tempted to put a little cash into this name with a 3 year time frame in mind. The yield is 13% right now, but I wouldn't be heartbroken if they reduced it again - as long as we saw some capital appreciation in the next few years. Thoughts?
Read Answer Asked by kelsi on March 08, 2016
Q: Hello Peter and the 5i team

I have been starting to look into the energy sector as I think there will be a slow and steady increase in oil prices over the year (I think there will be dips back down but these dips will not be as low as the previous ones higher lows and higher highs as the year goes). What do you think of Vermilion energy? I look at the numbers and it seems to actually have a fairly large amount of debt (comparable to that of BTE on a total debt to capital ratio, although it hasn't had the bad press about its debt compared to BTE). It has a higher price to book. Management seems very good though and I like that it is diversified on a global scale and doesn't have its oil land locked in Alberta like many Canadian oil companies. What are your thoughts on the company? If you don't like it what energy names do you like better.
Read Answer Asked by Darren on March 08, 2016
Q: Greetings Peter & Team:
A short time ago your comment was that you preferred gei over mullen transport. I own ipl and would appreciate as detailed a comparison of ipl & gei as your time permits. To my knowledge they are both midstream producers. Also, in your opinion which has the most upside in a changing market, and considering all metrics, which would you own. I await your learned opinion.
Regards,
Ben.
Read Answer Asked by BEN on March 08, 2016
Q: I would like to increase my weighting in oil and gas. I currently own equal weights of: Whitecap (WCP), Tourmaline (TOU), and Vermilion (VET). Should I just increase my weights equally, or switch to other equities? Thank you for all your help.
Read Answer Asked by Paul C. on March 07, 2016
Q: you never got back to me on this one.

massive insider selling at 11-12 range in early dec.

cfo disposed of 30 % of position.

this according to ink insider report on td website.

are these #s correct.

the last I heard from 5I you didnt agree with these #s

sold my position and bought sgy after talking with IR but would like to divversify now that sgy has moved 50% for me.



Thx Blake
Read Answer Asked by blake on March 07, 2016
Q: Over the past 2 weeks or so, this stock has rallied about 20%. Has it bottomed and is this a good time to buy ? Is the dividend still safe ?
Read Answer Asked by Don on March 07, 2016
Q: I currently own small positions in XEG, CPG, ARX, WCP and VET. They total 6% of my portfolio and I plan to move towards a 10% oil weighting by the end of the year.

I'd also like to buy a position in small cap energy so that I can benefit from the rebound, but I can't pick which one to invest in and am afraid if I buy just one, it may end up being the small cap that goes bankrupt. What do you think of me buying Sprott's Energy fund? I don't usually like mutual funds because of the high fee (2.5%) but if I buy very small positions in 10 small caps myself, it will cost me 1-2% in transaction costs anyway. Also, if the fund goes up 30 or 40 percent, I won't care much about the fee. Do you think this is a good idea? Do you like the fund? Are there any ETFs that would be comparable? I own XEG but it is mostly large cap oil, so not comparable.
Read Answer Asked by Carla on March 07, 2016
Q: quite a few stocks in the oil and gas sector have been going up and I am under water on them all but the weight is quite small and wonder if better to sell them in the momentum or ride it up and then once a downturn sell or average down to bring the weight higher and hang onto them. If I sold these stocks I could then add to my other holdings(non oil and gas stocks) to bring their weight higher.
Thanks
Dolores
Read Answer Asked on March 07, 2016