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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: I currently do not have any exposure to the energy sector. I am starting to get attracted to the high dividends of some of the higher quality companies such as WCP. I am thinking of a pairs trade; shorting XEG and buying WCP long. This would allow me to collect the dividend but protect me on any further down side. Once the energy sector calms down and starts to behave rationally I could slowly take off the short position leaving me with a long position in WCP. What do you think of a strategy like this?

Thanks, Darcy
Read Answer Asked by Darcy on December 12, 2014
Q: Hello 5i team,

I would like your opinion please...

Warren Buffet is not the end all do all but there is no question he has some very solid insights. One of his idioms is "be fearful when others are greedy, and be greedy when others are fearful."

With the recent falling of O&G stocks like WCP, I have been watching Relative Strength Index (RSI) with the hopes of finding an over sold equity and taking advantage.

On a RSI scale of 0 - 100 it is widely thought a stock is considered to be oversold if the RSI falls below 30.

on Thursday WCP RSI was 29.5 after changing hands as low as $11.395 per share. By comparison, the current RSI reading of the S&P/TSX Composite Index is 44.9.

Today WCP is trading around $11.60. Would you consider WCP oversold at this time and that taking on a "greedy" attitude would be wise? Or would you advise to wait until after tax loss season is over before moving in today?

Thanks for all you do

Gord
Read Answer Asked by Gord on December 05, 2014
Q: Hello Peter and Staff,
I own a diversified portfolio inspired by your own and I have done OK thank you. My question is regarding my energy portion.
CWC,KEL,PEY,PD,RRX,WCP represent now about 7% of my portfolio after the recent pull back.
Should I hold, average down or sell for better opportunities ?
Thank you for your excellent service.
Regards, Raouf
Read Answer Asked by Raoul on November 04, 2014
Q: Hi 5i Team. Perhaps one thing to remember in these times is that, if you are lucky enough to hold cash and is waiting to get in, you could do it in steps. Take for example, Whitecap. It got to over $18 before the drop. When it got down to 13.95, I went in with half a position. It bounced up violently the following day (2 days later? whatever), I went in with the other half at 14.90. Of course, there could still be another drop in oil prices. For the long run though, we are addicted to the stuff. So it is a hold. I am able to stay calm during all this turmoil because I was unlucky enough to have been invested through Black Monday. 20% drop in one day! This one we are experiencing is a picnic. You don't need to remind me that anniversary will be in a couple of days. Cheers. Henry
Read Answer Asked by Henry on October 19, 2014
Q: With the U.S. comments on becoming self sufficient on energy the NEW supply is going to come from shale which has a huge demand on water .The Ogala Aqua for the largest in the US has been depleted down to 20 per cent this depletion took place in the last 20 years a result of growing vast amounts of subsidized corn for ethonal production .
My opinion is that the jury is still out on fracing and I am not prepared to write off Canaidian oil and gas as a major supplier to the U.S. market.
Kind regards Stan
Read Answer Asked by Stan on October 10, 2014
Q: I saw your recent response to a question asking for your top energy companies. I was surprised, based on many of your previous answers to questions, that Whitecap(WCP) was not on your list. Has anything changed with respect to your views/expectations on Whitecap in terms of relative valuations particularly with the recent increase in share price, current expected growth,etc.?
Read Answer Asked by John on August 25, 2014
Q: I would appreciate your comparison of Enerplus (ERF) and Whitecap (WCP). I have done well by ERF but RBC's recent downgrade on the basis of its price appreciation makes me wonder if the growth prospects for WCP might be appreciably better. There would be no tax consequences to me of making such a switch and the dividends are similar. I look forward to your reply.
Read Answer Asked by richard on June 11, 2014
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