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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: Hi 5i,
I'm looking for guidance respecting TVE, which I've owned for quite a long time. I feel my investment is basically near dead money, treading water just to stay afloat - but I freely admit I'm not knowledgeable enough about the O&G world to properly analyze future prospects of a company based on amount and location of reserves, BOE/day etc. etc.
I've read your answers to recent past questions about TVE, and know you think it's a takeover candidate, with the acquirer paying around a30% premium.
CIBC has a target price on the stock of $4.50. Morningstar's fair value is $4.89 and CFRA rates it a strong sell with every criterion it applies being negative, except valuation which it pegs at "neutral". National Bank meanwhile rates it an outperformer with a target of $6.50. So it seems those experts are pretty much all over the map. Meanwhile all I know for a fact from my personal involvement is that TVE has done precious little to reward shareholders either in terms of capital appreciation or dividends (compared to others out there like WCP et al) for quite some time. Even having bought and held since April of 2020 hasn't led to much compared to many others in the sector.
After that longwinded preamble my questions are:
- Am I justified in thinking that the likelihood of meaningful capital appreciation and/or dividend returns in the next year or so is quite remote, and
- Based on your experience what would an acquirer pay for outstanding shares? Would it be the 30% premium you mentioned in a previous answer, so about $4.55/share or have I misunderstood you?
My inclination is to sell and be done with it because I don't see any light at the end of the tunnel except the speculative chance of TVE being acquired and there are lots better places to put one's TFSA money.
I would sure appreciate your thoughts.
Thanks,
Peter
Read Answer Asked by Peter on March 05, 2024
Q: Hello 5i, As the Trans Mountain Pipeline is nearing completion could you speculate as to is the Federal Govt sells the pipeline which Companies/Groups would be the logical buyers.
Read Answer Asked by Michael on March 04, 2024
Q: What would be your top energy (large and mid caps) picks today for greatest growth?
Read Answer Asked by ZIM on March 04, 2024
Q: G'morning 5i,

I'm sitting on a fairly substantial loss on GXE in my TFSA. In trying to decide what to do, I first waited for the strategic review to complete, hoping that something positive would come of that. When it didn't, I next decided to wait for its latest earnings report, hoping for something positive there but, from my review of the numbers and despite management's rosy outlook, I don't see anything re-assuring there. either.
My inclination is to sell, take the loss and do something useful with the now severely diminished funds.
Occasionally in the past when I've made that decision with a losing investment, hindsight has caused me to regret it, and I think perhaps I should have been alert to signs that a turnaround was in the offing.
From your objective perch do you see any reason to hold GXE given the milquetoast strategic review and what I interpret to be the less than satisfactory recent earnings report?
I look forward to your thoughts. Thank you.
Peter

Read Answer Asked by Peter on February 28, 2024
Q: I will be making a case to our investment club to replace CU with ENB..The portfolio mandate is conservative growth with above average dividends. How would you compare these two companies, what metrics would you use, how would you frame the presentation ?
Thanks. Derek.
Read Answer Asked by Derek on February 28, 2024
Q: Hello 5i, Could you comment on TVE as to I think I caught the last part on the news as to the Indigenous groups have a majority stake in Tamarack Valley and if so what are the details?
Read Answer Asked by Michael on February 28, 2024