Investment Q&A

Q: Please take as many question credits
you need to fully answer this. I would like growth and reasonably safe stocks. I have losses in all of these; should I sell and take the loss? Hold as they are likely to recover in next 6--12 months? Thanks. Helen

Q: I think this question may be more about financial statement understanding, or oil & gas reporting specialization, than investment, so it may be beyond the scope of what you can advise?
Kelt's most recent quarterly report includes a $260 million impairment charge on their assets ("CGU") -- that magnitude is huge and is the lions share of their (huge) quarterly costs and loss.
Are you able to provide any explanation or further information about this transaction?

Unrelated, I see today's large insider purchase -- looks like a substantial vote of confidence?

(I have a tiny piece of KEL in my TFSA)

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

Q: When is the anticipation completion date of the sale to Conoco Phillips? What portion of the company is now oil and what portion is natural gas and is it dry or wet? How do you feel about Kelt for a 2 to 3 year hold? Thanks for your input.

Q: With Kelt’s sale of Monteny assets for 500M to ConocoPhillips, what is your view of the stock now and going forward? Would you recommend it?

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

Q: In a relatively prolonged and deep recession,for each grouping of companies,please list in order from least likely to most likely to go bankrupt.
Group One:KEL,NVA,BIR
Group Two:STC,QST,WELL,XBC,GRN
Thanks.

Q: With the current oil situation what is the future of these stocks and which ones would you sell now

Q: In light of the likely prospect that the economic effects of the corona virus will get worse, I am looking to reduce my over-weight position in the energy sector... please rank the four companies in terms of financial resilience to a significant drop in the price of oil. I know BIR is mostly natural gas and not sure how it would be affected. Thanks.

Q: Wondering what your perception is on Kelt these days and if it could be a takeout target. Thanks for your insight.

Q: In a recent answer to a question on an oil company, you mentioned that it is hard to be optimistic on a company if you don't like the management team. So my question is, which of the management teams in the oil sector would you want to align yourself with, and why? Alternatively, which of the management teams would you not align yourself with? Please deduct as many credits as necessary to fully answer my question. Thank You.

Q: I have the following loss that I can claim as a tax loss- wef = 44% - usa=31% - shop=18% - meg=14% - lspd=16% - Kel=40% gud 30%. My question is there any of these stocks that have any chance they will recover before the 30 buy back period expires? I would hate to sell them and then watch them recover more that the loss that is claimable?- appreciate your thoughts

Q: Could you please explain the options as Kelt is being delisted from the TSX? Will it be on the Venture exchange?
Thanks, Alan

Q: Good Morning 5i,

So on this fine Friday long weekend morning, I'd like to pick the brains of people who've "been there and done that" much longer and more successfully than I, and have seen some things in the financial world first hand that I have not.

I want your opinion on oil and gas. Are we not watching one of these classic "blood in the streets" scenarios you always read about as investors and wish you'd had the fortitude to plug your nose and dive in? The shares of almost every publicly traded company in the space are being thrown away for nothing. The good ones, the bad ones, the ones making money, the ones losing money, good balance sheets, bad balance sheets - it's almost irrelevant. If they're in the space they're being slaughtered.

So if the thesis is:

a) it will take a lot longer to power the world with worm casings, pixie dust, and unicorn farts than some would have us believe (i.e. hydrocarbons are not going anywhere in the foreseeable future)

b) a surprising number of these companies have solid balance sheets

c) a surprising number of these companies are earning profits hand over fist, doom and gloom aside

If a, b, and c are indeed true, you'd have to believe a lot of these companies trading at historic lows will eventually make investors a lot of money. Like buying Florida real estate in 2009.

What am I missing? What holes can be shot in this thesis, looking at it objectively?

I take the point that there is no catalyst to change things or excite investors in this space (although I do get surprised from time to time that the fact that a company can throw off ridiculous amounts of profit and return it to shareholders via dividends and buybacks doesn't itself become a catalyst, but I digress...)

I also take the point that these scenarios can persist for a lot longer than people think they can before things change.

Single-company risk is always there, I understand that, but I reject the idea that all of these companies are headed for bankruptcy.

Aside from patience and the stomach to watch your investment get hammered in the short term - where exactly are the risks?? This seems like such a great buying opportunity that I feel I have to be missing something.

Thank you for whatever insight you can share, and happy long weekend to you and your families!

Ryan

Q: Eric Nutall at Ninepoint keeps on saying he is buying heavy into energy space companies that are trading around 2.5 EV to Cashflow. Just wondering what some of the better names he’d be buying into may be. Any idea or suggestions?

Q: Any recent news? It has been hit quite dramatically in the past two weeks

Q: Morning guys:
Would you buy this name for energy exposure at the current price?

Q: Looking at starting positions back into Canadian oil. Could you give me your thoughts on these three and your preference with reasoning. Thx

Q: Hi group appreciate your comments on energy I recently bought Kelt + Meg (ahead of earnings) both stocks almost instantly dropped 10% +> what's you thoughts on these two buy sell or hold (earnings just starting on energy companies and they are expected to be positive for most part. Also comment on on Cigi the quarterly results were not well received and the stock has been hit accordingly- sell or continue to hold - deduct credits accordingly and thanks for your help

Q: Hi Peter, any thoughts in this 4 co. Would like to get back into oil and gas. Would you buy any of this co today? How would you rate them? And is Peyto dividend safe if oil drops to $45.00. . Thanks. Alnoor