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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: Will there be a lot of selling pressure on the these stocks during tax loss season. Should I sell now and buy back at the end of the year.
Read Answer Asked by Steve on October 14, 2020
Q: Please rate the above for survival and continued Div. payout in the next 5 years, based on cash- flow that well covers the dividend . I am a senior and need income. I have a position in all the above and would like a rating best first. Please insert your suggestions for the above criteria.
thanks
Yossi
Read Answer Asked by JOSEPH on September 29, 2020
Q: Hello and thank you for the great advices as always! In a locked-in RSP, about 10% of my portfolio is exposed to oil&gas since I bought WCP, ERF, BIR, TOG AND VII in the big drop of March. Although I am Extremely happy with the run up so far, I've started to add stop limits to TOG, BIR and VII as I am A) scared of another downturn in the second half of 2020 (COVID related risks and current valuations) and B) I've also noted from reading the Q&A section that 5i isn't particularly bullish on oil short term and that you often categorize these companies as not a ''must have'' for the sector.

1) I haven't been able to get myself to think of selling or putting a limit on WCP. I know you aren't too much excited about the company, but I am emotionally attached to it. One of my best play. Love their Greener-ish Footprint. Love the monthly dividend(DRIP). Love that the operations are located in Canada. I think it will be a good consolidator (Manulife's NAL resources for a start). What's your view on the company today and would you consider my sentiment for the company irrational (or financially dangerous)? I've seen 5i recommend VET over WCP, but I don't understand why. I find VET very disappointing this year, not well paid to wait and its geographic dispersion a headache.

2) Similar story about ERF. They have one of the stronger balance sheet for the sector I hear and wanted your take as well on the company as of today. I found their planned approach for the future a little too conservative on their latest earning call. My two fears with them is that they are a much smaller player and with the US elections coming up, their Dakota operations are stressing me more especially with Biden's statements on energy.

3) I hold some Suncor&CNQ in other accounts and I will eventually reduce my total exposure to the sector, but for fun's sake : If you could only keep one position between ERF and WCP (drip active) for the next 5-10 years, which one would it be and why?

Thank you very much again for the help and the great service.
- Michael
Read Answer Asked by Michael on September 01, 2020
Q: Hello 5i, I purchased these stocks at a much higher (higher) price. As we approach tax loss selling , which ones are worth keeping? and which ones sell now?
Thanks for your great service.
Carlo
Read Answer Asked by Carlo on August 31, 2020
Q: Why doesn't the company suspend the dividend and divert the money to debt. It can be reinstated later when it is more viable. Most investors would not miss it. If you own ten thousand shares you only get one hundred dollars a month dividend. I would gladly give it up if it went directly to debt. It seems pragmatic.
Read Answer Asked by Steve on August 26, 2020
Q: Hi, on a risk reward basis , what are the 3 oil companies you would invest with the highest leverage to oil prices ?, this will be no more than 2% of my portfolio, so I can take the risk of losing it if they go bankrupt . My exposure to oil is rather small and limited to large companies like Enbridge and Suncor. My view is that oil will have a come back in a 3 to 5 years time.
Read Answer Asked by Alejandro (Alex) on May 19, 2020
Q: I own the following and thought: WCP ( good assets good balance sheet),
CJ ( slow decline rates), VET ( Brent prices) And they were all paying great dividends ! What could go wrong eh?
The model of great dividends in this sector is broken and not to return.
These stocks represent a small part of my portfolio.
Believing that the market will do its work eventually , I am looking at selling these and replacing with PXT which is one of your favourites in this sector. Would you expect it to bounce back to the same degree as the others or more / less?
Emotionally it is very difficult to sell your losers, always hoping they will come back, but have found once I sell them, they are not daily reminders of the money I have lost.
PXT has a strong balance sheet, good assets and management. Is their oil sold and refined within the region? Would you buy in RRSP,TFSA or CASH account.? Thanks. Derek
Read Answer Asked by Derek on May 13, 2020
Q: I am a "buy and hold" long term investor. I have held these stocks for over five years on the assumption that at least one of the pipelines would be built and the stocks would regain at least some of their losses. Of course that hasn't happened. With the Covid-19 situation I am concerned about a serious downturn in the economy during the next 18 months. As these stocks are already extrememly low, I am wondering if they will survive, let alone improve, during the next year or so. Based on income, debt levels, and future prospects, please rank each company according the possibility of failure.
Read Answer Asked by Joyce on May 13, 2020
Q: Compelling argument in the financial post recently on oils rebound - ‘how the corona virus is setting the stage for the next oil boom’. Do you buy into this thesis? If so what companies would you look at with most upside and safety (Eg will be around to see it through)

Read Answer Asked by Gregory on April 15, 2020
Q: Hello 5i, I have a 5% position in each of above companies and I am down over 40%. I am prepared to be patient for another 8-12 months, but with WCS selling per barrel at less than the price of a beer, will these companies survive? what is their debt to equity ratio? Is it time to bail out now? depending on your assessment which one would you consider safe to keep?
Thanks and be well!
Carlo
Read Answer Asked by Carlo on April 13, 2020
Q: hi
I own the above oil stocks. WCP is small and in TFSA, so I will keep it.
I have oversized position in Parex, but Vet and Fru are small. Looking to sell at least one, today, would you sell Vet or FRU or both ? I am comfortable with my position in Parex but wondering if better opportunities are available in other sectors. Which are your favorites sectors when coming out of this?
Read Answer Asked by Francois on April 13, 2020
Q: Good morning,

Looking to clean up my oil and gas names but don't mind keeping some or adding others to maintain some exposure.

How would you rank TOG/TOU/BTE/WCP in terms of bounce back potential/likelihood of survival/balance sheet strength? What is you top two?

Do you much prefer SU, PXT, FRU, BIR vs the above names? What are your favourite oil/gas names at this time?

Thanks
Read Answer Asked by Angus on March 30, 2020
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