Investment Q&A

Q: Your take on company and is it a buy at these levels for income

Q: I came across AET.UN. I went over some of the answers/comments provided by this site to questions asked by members over the years. To your credit, you "never really liked the company" but I noticed there was really no strong sell conviction (I know you don't use the term, but you understand) when there certainly was enough evidence things were going terribly. Price action/money flow is the ultimate fundamental. A lot of us were sandbagged especially because of "chasing yield" or Eric Tremblay's record at Enerplus. Any lessons? What checks and balances exist at 5i to ensure minimizing this sort of implosion.

Q: Hi,
Mart Resources has an offer of .80 a share on the table. I currently own over 10, 000 shares at .99 and the share price hasn't moved much today. Would it be wise to buy more to try to lower my share price to minimize my loses?

Q: Good Morning Peter & team,

Read an article this morning in the Globe & Mail stating that

"Unfortunately the serenity has been shattered and the reading of the fourth-quarter results on March 5, 2015 will be an entirely different experience. Analysts from Raymond James and National Bank Financial cut their target prices in early February which put another warning flag on the track."

It goes on to explain the dividend may be in danger and, there doesn't appear to be any stopping this down trend.

I have a small position which is down about 50%. I am thinking about selling now prior to the report and taking the loss - my first ever - as I don't see the downtrend stopping any time soon.

What is your advise at this point, and what do you think we can expect on March 5?

Thanks for all you do

Gord

Q: Would EC be a good long term hold for my RRSP? Last report, comment
Thanks
Cec

Q: Hi Peter,
What happened to all the O/G questions ? :)
Of the 3 listed where would you add at this time ? TOU has held up well. Dividend for WCP certainly looks healthier than SGY. Thank you.

Q: Bankers come out with there quarterly report and there capex spending for 2015 would like take report and is it a hold Thanks Barry

Q: I see bnk just came out with reserve numbers etc. I have to admit a little above my head. I note from a Dec letter that you know mgm and think highly of them. Td also has a buy on them. I own about a 10% position in oil/gas. MEG, SGY & TOG. I figure with a 4% drop today that the mkt didn't like what they had to say..What do you think of bnk at this time, should I buy, or might you suggest something else. Thanks very much.

Q: A non binding offer of $.80 has been made by Midwestern, an affiliate of Mart, for the oil & gas company Mart.Is this a good deal for shareholders or can other offers be expected? It appears there is very little confidence in this price since the stock rose to $.72 today then fell back to the low sixties.Your comments ,as slways, would be appreciated.

Q: Would you buy this ETF at todays price or wait awhile to see if the price of oil continues to go down? Realize this is a tough call but I value your opinions. Tks, Bill

Q: Hi Folks,

Recently, CVE did a dilution bought deal for up to 1.7 bil @ 22.25 underwritten by TD and RBC. Currently holders of this deal are under water by almost a dollar. What do you make of this and from your experience when institutional holders make a bulk purchase of shares and then the shares tend lower initially, is it simply that these new shares are washing through and hence the lower price reps the increased volume. From an outsider perspective, the current price looks interesting to me with oil making a bottom formation. Thank you.

Q: Elkwater resources did a reverse stock split and changed their name to Striker .
SkX share are at 2.10 this morning. I'm confused.
Can you explain a reverse stock split and the benefits to the shareholder

Q: Your thoughts on this trade? • Sell ALA and PPL. Use ½ the proceeds to add into BTE and CPG, and the other ½ to Buy SU

Q: Do you favour the recent bought deal financing RE completed and would you buy it at this point? Thanks.

Q: Hi Guys,

I have bought Surge Energy over the past 6 months or so and I am down over 50%. One of my rules is to re-evaluate a company if it drops below 2% of my portfolio. If it stays below the 2% limit for a month, I have to invest more to get it back over 2% or sell my position. I have 2 questions:

1) Should the amount I already have invested influence me?
2) Would you buy or sell SGY today? I cannot just hold.

Thanks for your opinion.
John

Q: Hi - with the ETF - CDZ at 20% energy content, how do you view the risks to this ETF regarding these companies not being able to grow dividends in a prolonged and depressed energy environment. Does this change your outlook on CDZ as conservative, diversified dividend-grower ETF in Canada? Or, does this just mean CDZ cleans out the non-growers and looks elsewhere rebalancing to it's "aristocrat" rules as it moves on? Outlook and views on CDZ appreciated. cheers and thanks...

Q: I hold ERF ENB AND VET in my RRSP. Each holding is 5%. Otherwise the portfolio is diversified. I am concerned that ERF is unlikely to recover and (if you agree with TD and DesJardins outlook) I would select an alternative holding to replace ERF or to increase ENB and VET holdings. Please comment. Greg

Q: Stocks such as SES, TOT, PSI and BDI have moved substantially (admittedly in relative terms only) off their lows, which is a bit of a head scratcher. As far as you know are there one or two of these kinds of companies that stand to benefit should the push for LNG occur? Which is, or are, your preferred names in the sector, and why? Thanks as always.

Q: First question from an old mining guy. If you assume,as I do,that the next situation faced (after dividend and capex cuts) for Canadian oil producers will be re-statements of reserves and resources,who's on the casualty list? In other words, have you done a sensitivity analysis to see who's reserves drop from "14 years" to "5 years" at $50 oil?

Q: I'd like to know what your current view is on MCR. In response to a question I posed on Dec 9/14 the answer was "Macro had a very tough year; even before the recent energy sector meltdown, it experienced cost overruns on a fixed cost project, and this destroyed its profit margins. Now, sector retrenchment means there will likely be fewer opportunities for growth over the next two years. But.....it is still profitable, and very cheap. It has some debt, which may be more of a concern if there is not a recovery. After its big drop, we would consider it a hold, but would not buy any more. Note however that its small size now adds some more risks, especially in the short term while the sector tries to stabilize. We think it survives this cycle, but you will likely need to commit to it for another two years."
Yet, in a response to another persons question on Jan 16/15 you respond: "...Both stocks are very, very cheap, reflecting the debt and the sector. As far as survivability goes, much depends on how long the sector situation lasts. MCR, likely, has a better ability to reduce costs, as CET owns its equipment and when business slows it earns nothing on unused equipment. MCR insiders have much more skin in the game than CET insiders.

With the risk of the dividend cut hurting CET, we would reluctantly side with MCR today. But neither looks particularly interesting to us anymore. "

I realize that not the same person answers questions, and there was a period of time between those questions, and now...

What is your current view? Is it worth holding, or time to sell while I can still get something out of it.

Thanks for everything! Love your service!