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Investment Q&A

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Q: Just a follow up on an earlier question about BNP, Bonavista. I added to my position a month ago thinking the seasonal trend would show improvement in the price into the new year and then I could reconsider my longer term ownership (I am underwater). The price of Gas hasn't appreciate but it could still be early from a seasonal standpoint. The sell off in BNP could be a combination of stagnant gas prices and tax loss selling. I'm keeping with my thesis for the time being and hopefully cold weather and the end of tax loss selling will see a bump in the stock price in early Jan.
Your thoughts on my thoughts?
What's your opinion on Gas prices over the next 2-3 years?
Read Answer Asked by Bruce on November 06, 2013
Q: Hi:
I unfortunately has some Bonavista (gas) in my portfolio
some experts appearing on BNN claimed that the target is about $ 18, it does pay a small dividend
If I sell it and take a loss and move my money to other gas producers, would ARX and Peyto and Altagas be good choices?
By the way averaging down in Bonavista is a bad mistake
one would only average up ? right
thanks!
Read Answer Asked by Michael on June 20, 2013
Q: Hi Peter & 5i: Is Bonavista (BPN) in a similar boat to Longview? Both of these stocks have been moving steadily lower. LNV's managment's recent guidance appeared to indicate that their 2013 budget, for maintaining their distributions and otherwise treading water, required somewhat higher nat gas and oil prices than present levels, as well as maintaining a reasonably favorable (i.e. small) discount from WTI pricing. They also indicated that they had no protective commodity hedging in place. I'm wondering how similar BNP's situation might be. I know that BNP is a gas-weighted producer and that they have about 40% of their distributions going into DRIPs. Is it possible for you to estimate what BNP would need as an average AECO gas price in order to continue paying at their current distribution level, make their debt maintenance payments, and fund their cap ex sufficiently to replace natural production declines, all from FFO? Also what price they would require if shareholders were to stop reinvesting their dividends? I realize that their are enough moving targets in these calculations that I can't hold you to the numbers but estimates would be appreciated in any event. Thanks!
Read Answer Asked by Lance on December 17, 2012
Q: BNP Bonavista just issued stock at $16.50 to buy some of FEL's assets. Market seemed to think BNP got the better deal. Another implication is that it means no dividend cut for BNP in 2013. Currently BNP is trading below the offer and if the money was smart that bought in at $16.50 I could consider myself smarter at a $16.20 buy in. Is this a reasonable assumption?
Read Answer Asked by Gerald on September 05, 2012
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