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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 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: Hi,

I have held BTE and CPG for many years now and they are both down over 80%. Do you see any chance in a recovery to 2011 levels or would you cut your losses and sell? I have positions in each of my rrsp and non -registered accounts.

thanks
Read Answer Asked by Darrin on June 18, 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: Hi Peter an team, I've had these two darlings for a while, so of course I'm down. In a previous question when the price of oil was much lower you said they could rally if the price of oil would rise. How come there hasn't been a bit of a rally in these two. Thanks, Nick
Read Answer Asked by Nick on March 15, 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: Hi Ryan, I've held theses two companies from 2012 when they were doing well, in your opinion what would it take for oil to get back to a level where these two companies would not be worth selling or is it even worth waiting. BTE is a .52% and CPG 2.07% weighting in this RRSP stock account. Thanks, Nick
Read Answer Asked by Nick on August 17, 2017
Q: My question is about oil. I am thinking of buying an oil company if the oil price gets back down to $40. Is this a good idea and do you have a suggestion for a good company to buy?

Sheldon
Read Answer Asked by Sheldon on June 20, 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
Q: HI TEAM
Bought 2000 bte @ 4.00 i think id like to sell and replace it with one or two other cos. with better prospects. my other oil holding 3% are wcp
hwo . i been whatcing rrx but it doesnt move a little help please
thxs. and MC
bob
Read Answer Asked by bob on December 13, 2016
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