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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 team
When you say you would be comfortable with a 15 to 20 percent weighing in energy in a portfolio is that a percentage of total portfolio? For example with $700,000 portfolio $100,000 allocated to oil and gas stocks is adequately diversifying the portfolio with the rest in all different sectors. Thanks.
Read Answer Asked by Helen on October 20, 2014
Q: Coukd you please give yor cureent assessment of PRE: safety, dividend safety, prospects for growth and comparison to your current favorite in energy,
Read Answer Asked by lyle on October 20, 2014
Q: What do you think of the acquisition today of an oilfield rental company based in Fort St. John by Enterprise group? This would seem to be a direct attempt to strengthen their exposure to upcoming LNG development. Thanks.
Read Answer Asked by Michael on October 19, 2014
Q: Hi,
Would you step into any of these today or is this just an uptick in an energy down cycle?
Read Answer Asked by LJ on October 18, 2014
Q: Delphi has been reduced almost 50% from its peak in August despite having what appears to be a pretty good track record. Would you consider this a tremendous buying opportunity or with the recent fall in oil & gas prices perhaps its cost of production exceeds the value of what it produces and the company is more likely to fall further particularly if these prices persist for say a year or more?
Read Answer Asked by John on October 17, 2014
Q: I noticed Statoil is still declining while other oil majors are flat or bouncing today. What is your opinion on this company? I have a small position less than 1% of my portfolio. Should I hang on or cut losses? Is the dividend safe? It seems like its not afforded out of free cash flow.
Read Answer Asked by Andrew on October 17, 2014
Q: Peter et al,
The market is looking a little better today. Energy(CPG, BTE & SGY) constitute 20% of my portfolio. With some bargains out there, I am considering adding White Cap. I thought of adding more BTE but decided to diversify a little bit. Your comment on that, pls.
Also my wife has almost nothing but cash in her portfolio so I am trying to persuade to consider BTE. Could you recommend that to her (who is extremely conservative)?
Read Answer Asked by Gary on October 17, 2014
Q: Hello Team,

Can we please get your outlook on the tanker/shipping industry, specifically DHT Holdings and Tsakos Energy (recommended at Canaccord). Frontline (FRO) had a good bounce from the March 2009 lows and I am wondering if that kind of reaction can be expected from these two names. What do you think of their debt levels and prospects. Finally, from a sector weighting point of view, would they be associated to the energy sector.

Thanks,

BK
Read Answer Asked by Bekaye on October 17, 2014
Q: Hello,

Leg is below $5.00 now and I got into it a few days ago. I wanted to take advantage of these low prices. I was told leg hedged a lot of their oil, is this true? Is leg a good entry point at these levels. This is my only energy position. When will all this oil volatility madness end?

Greg
Read Answer Asked by Greg on October 17, 2014
Q: I was wondering if there is a net net benefit to North Sea oil in this negitive oil enviroment.
I am sitting on a fair amount of Ithaca energy, certainly have not made a profit, and do not know if I should buy more at this price or sell and take my lumps. When I bought it it was about 7% of my RRSP and have cut my hands badly on this falling knife.
This price today is less than 1/2 book value.
What do you think?
Regards
John
Read Answer Asked by John on October 16, 2014
Q: The oil sands are in a rough context. Do you foresee a reduction in dividend for COS ? If so, is this likely to lower further the stock price ? As far as I can see, only Imperial Oil(IMO) has declined less than others in the oil patch. Is all this something transient ? Would you advise awaiting the passing of the storm, and not change anything ?
Read Answer Asked by Serge on October 16, 2014
Q: Hi Peter & 5i Team,

Please give me your thoughts on the 27.27% decline today on Elkwater Resources. Is it still a good management bet at these prices or could there be some more days like today for this stock.

Thanks in advance.

Francis
Read Answer Asked by Francis on October 16, 2014
Q: Hi Peter and 5iResearch Team,
I know that you have concerns regarding the management team of Crescent Point, CPG. However, I am wondering how is it positioned relative to the other Companies, such as CNQ, TOU, etc., with respect to recent declines in oil price, its US oil and gas reserves, etc.. I'm kicking myself today, as I bought a small position yesterday… I always ask you first before I buy…and I didn't!
Thank you. Linda
Read Answer Asked by Linda on October 15, 2014
Q: I am overweighted in the Canadian energy sector and have been caught in the current downtrend. Should I sell some stocks;
BTE,CPG,ENB,VET,WCP and re purchase them at a later date if you think this correction could last several months longer.
Is it better to take a 10-18 % loss now and re-buy the same stocks at a cheaper price. I should have been more diversified!
Thanks for your help.
Read Answer Asked by Oleh on October 15, 2014
Q: With the acquisition of Westar Oilfield Rentals Inc. ("Westar").
how will this affect not only the stock price through dilution and the forward momentum of Enterprise?
"The final purchase price for the acquisition will be $13.5 million, which represents approximately a 3.3 multiple of Westar's EBITDA for the twelve-month period ended August 31, 2014. The purchase price will be satisfied through a combination of $10.0 million in cash, $2.0 million in Enterprise shares (2.5 million shares at a price of $.80 per share), and $1.5 million in vendor take-back financing, which will be paid over the next two years"
Quote from news release.
Thank you for the great work you provide
Henry





Read Answer Asked by Henry on October 15, 2014
Q: You mentioned Suncor's dividend is "fairly" safe in a previous answer. In general, are oil and gas dividends likely to be lowered in this market and do companies with DRIPs have a better chance of sustaining the payments.
I am ready to dip into some energy names with rising yields *by the hour!) but their reliability is obviously very important.
Thanks.
Steven
Read Answer Asked by Steven on October 15, 2014