skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi 5i,
The Baytex/Raging River transaction reminds me a little of the attempted merger of Dennison Mining and Fission Uranium, although there are some obvious differences too. In the latter, the FCU shareholders stepped up, voted against the merger, and the deal died, despite Fission management’s apparently supporting it. How likely is a similar scenario to play out with RRX? It may not always work this way but one might have thought that, if the proposed deal is so terrible for RRX shareholders, then it is really good for BTE shareholders. Yet BTE’s share price actually dropped more percentagewise than RRX’s did on the day. Were BTE shareholders really that enamored of the leverage that comes with a lousy balance sheet, and quarter after quarter of losses, that they didn’t want to accept the burden of higher quality, profitable assets? Finally, is it possible that this bad deal for good assets is being presented in order to force the hands of other potential buyers? And, in any event, how likely is someone else to look at it and say: Well, we can do better than that and still have it be accretive on an earnings and cash flow per share basis. (?) Thanks!
Read Answer Asked by Lance on June 19, 2018
Q: Assuming oil prices stay between 70 to 75, which of the following would you recommend first, please arrange in the order of preference for the following criteria :

good management
leverage to the higher sustainable oil price
great assets and net backs
reasonable balance sheet
good Western Canadian price for their oil.

the list which you can add to.

sgy,vet,wcp,cpg,ath,tog,bte,cj,rrx,

thanks
yossi
Read Answer Asked by JOSEPH on May 21, 2018
Q: I bought PGF and BTE on a big dip in April and neglected to sell on the multiple dips after that..... The recent rally has me back to a less painful loss. What the hell is causing this rally? I will likely sell once this level off but the fundamentals just don't seem to support the influx of money into these highly leveraged companies. I had written it off as dead money for the next few years and lesson learned ( again) to sell when you call momentum wrong. Not an analyst on the planet has oil going up to numbers that BTE and PGF need to cover their dept let alone make a profit in the next 12-18 months. So I guess my question is what is driving this rally in highly leverage energy stocks.


Read Answer Asked by Tom on September 22, 2017
Q: I am down 40% & 88% respectively on these two energy stocks. Should I continue to be patient in hopes of an eventual rebound or take my lumps and deploy what dollars are left into another sector that will produce some possible upside and yield.
I also hold TRP and KMI for cotinued sector balance in the portfolio.
Thanks 5i
Read Answer Asked by William on February 14, 2017
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!