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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 Peter & 5i: I’m confused by Dualex (DXE) and Africa Hydrocarbons (NFK), probably within a few weeks of test results from their Tunisian oil well joint venture. It seems all the preliminary log results look promising and “hydrocarbon shows” have been noted but you don’t know if you have a commercially viable well until you flow test it and they are still just about to do that. Meanwhile some of the numbers are not adding up for me. I think NFK has a slightly smaller interest in the project (47.5% for NFK: 52.5% for DXE). NFK had 5% more shares outstanding and just today announced a private placement with Canaccord that could float another 18% more shares potentially, at 18 cents a unit (with each unit including one share and one half warrant good at 30 cents). On the same day the NFK share price catches up to DXE’s and both close with a bid/ask spread of 0.245/0.25. As I understand it NFK doesn’t really have any other assets aside from this JV. DXE on the other hand has a Hungarian nat gas property that has cash-flowed a couple of million $ annually, which while not overwhelming is at least more than nothing. So how does more dilution, less of an interest, and less other assets add up to an equivalent share price? What is NFK’s rationale for doing this financing on the eve of testing the well? Were they completely out of money and caught in a bind? Or is this a signal that they are not so confident in the well test after all. If they aren’t confident, what is Canaccord doing? A dry well means the $0.30 warrants probably never get exercised. Are they going to immediately flip all of the private placement shares for a couple of pennies profit? Or is this NFK maybe giving Canaccord a sweet deal now to lock up a more favorable financing deal that would follow on positive well test results? Can you make this story coherent?
Read Answer Asked by Lance on October 23, 2013
Q: Is Argent Energy having a credabilty problem,they keep getting hammered even after issuing a statement ?
Read Answer Asked by terrance on October 23, 2013
Q: hi peter & 5i team if this was your money which would you buy Bellatrix or etf powershres buyback. thanks.
Read Answer Asked by Ed on October 23, 2013
Q: Hi I have held Bonivista for over a year with a decline of $3 per share, would it be wise to consider switching into the Bellatrex offering at $8.
Thanks very much
dick
Read Answer Asked by dick on October 23, 2013
Q: With oil prices declining and some expecting even biggger declines in oil prices
would this be a good time to short oil and/or to sell off some oil companies?

Thanks.
Read Answer Asked by Donald on October 22, 2013
Q: Given the ever-increasing growth in oil and gas production in North America and the relatively tepid demand for these resources, I'm inclined to think that the price of a barrel of oil or BCF of natural gas will decline in the coming years. Am I right in this assumption and would it negatively impact service companies, in particular Shawcor?
Read Answer Asked by Robert on October 22, 2013
Q: hi peter&team I am going to invest in some stock which one you prefer bxe tog rmp wcp or a us etf pkw thanks
Read Answer Asked by Ed on October 21, 2013
Q: What are your thoughts on SEQ. Its dividend yield is pretty high. Is it sustainable.
Read Answer Asked by Imtiaz on October 20, 2013
Q: I want to consolidate my 5 energy holdings: Suncor (SU), Batex (BTE), Canadian Natural Resources (CNQ), Legacy Oil and Gas (LEG), and Whitecap (WCP) down to three. What would you suggest selling? Thank you for your help. Paul
Read Answer Asked by Paul C. on October 19, 2013
Q: After a steady decline, SGL has made more than a 10% recovery in the last few days. Is this based on good news? I can't dig up any info myself. Thanks for your great service.
John
Read Answer Asked by John on October 19, 2013
Q: would like to know what your thoughts are on HIGH ARCTIC ENGY INC symbol hwo I am looking at it for yield and growth thanks Barry
Read Answer Asked by BARRY on October 19, 2013
Q: ESN was discussed on BNN and had quite a kick after. Do you cover this stock? what are your thoughts. Thanks. Great service
Read Answer Asked by Dale on October 18, 2013
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