Investment Q&A

Q: Hello, I just joined and was hoping to find a report on ESI. As a dividend investor, ESI looks very attractive given it's current yield and valuation. More important, it's record of growing dividends for 19 consecutive years is hard to ignore. Yet, I hesitate. It's not just the lack of growth and the recent misses, the FCF looks problematic. Can I have your opinion? Thanks

Q: With financing now in place for a few years and drilling commencing in the Duvernay area, would ATH be a good candidate to average down given the all-time low price today?

Q: Do you think Surge Energy is worth holding at current levels given the risk of a dividend cut? I understand their hedging program but as investors continue to panic sell the yield has become noticeably high...knowing the company the way you do, what is your best advice. Much thanks as always, Curtis

Q: With just a 1% weighing in crew and the apparent stock momentum on crew, would you buy more to average down the cost. I know you prefer stocks that are going up but it seems to have some momentum.

Q: Peter; Coulld you comment on SGY's " sustainability" report of today. Mr.Colborne obviously watches BNN and is ready to defend his company. Thanks. Rod

Q: I am looking at purchasing 2000 shares of Surge Energy. This will be the one energy company in my portfolio. It will be 7% of the total investible assets. I am looking at holding for 2 years or longer. I like the dividend. I see the company released information about the low oil prices this evening, and their thoughts on this and how it will effect their investments in the future, and the safety of their dividend. What are your thoughts. New member yesterday and I am greatly impressed with your comments on Market Call yesterday. A great website.
Thank you

Q: I understand and accept the importance of a properly constructed portfolio. However, I have a lot of trouble deciding on how to set up the energy portion of my holdings - mainly because there are so many different yet excellent choices.

If assuming you want a 15% portion of the portfolio to go into energy, how does one decide to split this among light oil, heavy oil, tar sands, natural gas, service companies, drillers, explorers juniors, seniors, dividend payers etc.? All the while, keeping your total portfolio down to 20 - 25 names?

Is it just a matter of picking 3 or 4 from any of those in the sector and going with them or is there not as much correlation among the types of companies listed above as I think?

Thanks for helping to shed light on this area.

Paul F.

Q: Hi, there are headlines again today about forecast poor demand for oil in 2015. Do you see the next year as a period of protacted pain for Oil stocks, with the best strategy to hold off for a while in buying the sector? Or do you see the headlines as an opportunity to "buy at the time of maximum pessimism", with the best strategy to start buying now and in the next month or two during tax loss season?

Q: Hello - I have the opportunity to pick up a position in this energy IPO. I am conflicted as I think the US dollar will continue to hurt energy companies for the foreseeable future. To offset my bearish view I understand the IPO issue price has been lowered, the secondary offering has been eliminated, and a good chunk will continue to be held by the private issuers.

Would you be able to confirm this information. As a retail investor, I find some IPO information difficult to validate. I seem to always be the last to know.

Would you also provide your thoughts on this IPO.

Keep up the great work. Mike

Q: I am considering buying BDI,bot do you think I should wait till the end of tax loss season?
Also why would I buy BDI instead of WEQ ? and if the oil prices stay low would BDI get hurt badly with the whole sector?

Q: Than you for your continual great investment and educational advice and responses.

My question relates to the future building of LNG plants in BC. Although this might be many years away before building actually begins, are you able to identify any companies that may be in a position to benefit from the construction aspect at this time. Given that there is very special need for very specific types of either construction or manufacture of specific types of infrastructure for these plants, I would think that there may be a limited amount of companies that could provide the product or the expertise.

Any thoughts you may have for this potential long term investment would be appreciated.

Q: I'm considering investing in sm cap energy cos. that are focused on the Monteney and Duverney and Horn River Basins. Which of the following would you prefer: Donnycreek (DCK-V), Yoho (YO-V), Artek (RTK-T) or Storm (SRX-V)?

Thanks for your insights and analysis. Appreciate your efforts.

Q: Hi team: any insight into how the IPO is going. I understand they are still proceeding and are trying to get it done. any sense as to final price? thanks

Q: we hold tou and are down 20% would you consider this a good time to trade some or all of tou and buy either fm or wcp or possibly both ... tou is a small holding is less than 1% portfolio holding thank you for your continued help in these matters

Q: I have a fairly large holding of O&G stocks and the recent sell off in the O&G sector have been devastating to my portfolio. However, I know (at least I think I know) which ones are resilient and can bounce back over time, except for one - DEE.

Right now I'm down over 40% on this name while all others have shown various degrees of recovery already, especially today. In fact DEE is the only O&G stock I own that is in the red for today.

Is DEE a lost cause and should be my first tax loss selling for 2014? Or should I at least wait for the Q3 results and the accompanying forward guidance to see if there is still a chance for a turn around.

Thanks.

Q: Hello Peter & team,
I already have 10% of my portfolio in O & G stock and do not wish to go higher. In this context do you consider cfw,tcw frc ses, pd & tdg in the same group or is their movement pattern different? Any reason why the are up/flat today while O & G
stocks are significantly down?
If Oil & Gas stays at $80/85 & < $4 respectively, will demand for their services decline? Would PD & TDG suffer more than the other 4 with prices as above? Finally considering that they are still down 30% from peak would you consider any of them worth
buying & if so your preference or any other similar stock that
you like?
Thank you for your guidance.
Tony

Q: Can you give me your thoughts on what is happening with Canadian Natural Resources. I know that oil has come off but cnq seems to be dropping more than I thought it should. Is it time to move on or be patient with it?
Thank you

Q: Could I please have an update on Southern Pacific Resources (STP)? Their current share price is 3 cents - is there any value there? Thanks in advance. Helen

Q: This stock was beaten up badly during the last six weeks, as well DTX has more or less been a "flatline" case for about the whole year prior to the latest sell off.

Is DTX a good bottom fishing candidate, now that it has been beaten down enough, with perhaps some catalyst from the upcoming Q3 results and forward guidance?

Thanks.

Q: I bought Vermillion at its peak, it has dropped off in the last while and I'm still underwater approximately 10%. I'm happy with the regular dividend but wondering would you sell and buy another energy stock (such as Tourmaline) that pays a dividend and will provide growth as well.
Thanks
Jim