Investment Q&A

Q: I think the management did a good job. The offer made by Precision is somewhat 25% higher than Ensign, but what kind of deal is it for Precision's shareholders? Your comments will be appreciate.
Thanks

Q: My question is about Paramount Resources and Precision Drilling. I am considering selling one of these companies for a tax loss. Which one would
have better prospects in the future and which one should be sold now?

Q: Hello 5i
I just sold a small amount of Precison Drilling to recuperate a tax loss. I don't really want to keep anything like this permanantly in my portfolio but was hoping to buy it back in 30 days in order to get back at least what I paid for it. Is there any other stock that I could use as a substitute in the meantime?
thanks

Q: Hi 5iR Team, I have read a number of your answers to investors questions on PD. 5iR's main concern appears to be PD's high debt. I have read TD's most recent PD report dated April 27/18. In contrast as stated below it is positively a glowing report on PD as if management could walk on water. TD states....
"In our opinion, persistent negativity across the Canadian oilfield services sector
has created one of the best opportunities for investment in quite some time. In this context, we believe that Precision should be a core holding in all
energy portfolios, based on our view of its quality assets, compelling valuation,
potential for FCF generation and deleveraging, experienced management team,
scale advantage, strong U.S. exposure, leading-edge technology initiatives, size,
and liquidity. Specifically, as supply constraints result in near-term pricing traction
and rig upgrades, we expect that Precision's high-quality, homogeneous asset base
will require less capital spending than its peers, implying stronger relative FCF
generation. We are maintaining our ACTION LIST BUY rating and $7.00 target price. In addition, TD does recognize debt as a concern for PD but feels management is committed to better capital discipline.
Ok, 5iR other than high debt do you have other concerns that clearly TD has yet to uncover?
As a cautious investor it always gives me a better feeling when I can get both 5iR and TD analysts recommendations to concur.
Finally SES would probably be TD's second top pick in the drillers. Any thoughts on SES?
Thanks Team. Cheers, Chris

Q: Morning Guys,
I have a small amount of cash (Not enough to spread around) to add to one of the above companies.
Which would you add to at this time?
Thanks
John

Q: With ConocoPhillips and CPG buying large acreage in the Montney play in BC and Alberta they must be planning a lot of drilling. Which drilling companies would benefit the most from this ? Thanks. Rod

Q: Hello, I'm seeking your opinion on the drilling space...Do you think now might be a good time to buy in? Who are your preferred drillers?

Q: You are very generous in assessing most every company and finding something good on the balance sheet or fundamentals.But i know from experience that there are companies I just should not have bought into for several reasons.Do you have a list of companies that you would not want to be involved in.

Q: Did you ever have to finally decide? Go with the one and let the other one ride. Who do you recommend I drop as part of my portfolio cleanup?

Q: I am doing a little cleanup of my losing positions. I have small "leftover" of BDI, HNL, AIM and PD which all seems to be dead money right now but I wonder if one of these companies could bounce back (BDI for exemple is trading at 0.3x book value) ?

Can you suggest a couple of good companies to replace these losers?

Thanks again for your good advice and use as many credits as needed!

Michel

Q: What are your thoughts on precision drilling as a 2 to 3 year time horizon trade at these prices. Thanks Steve

Q: I read this morning in Globe and Mail about Precision Drilling.
What are your thoughts about the article and PD in general. Would you buy now or wait&watch or sell and buy another driller?

Q: Hi 5i Team,

I have PD and I am currently down close to 40%. I am interested in selling and moving the remained of the money into GUD. I feel like PD is dead money for a long time. What are your thoughts on this trade?

Thank you.
Francesco

Q: I have been thinking about selling Riocan a bit concerned about the dropping price. I am in a positive position. In a previous questions I asked your opinion on PD. If I sell this position I was thinking of selling on the US side and have the funds deposited to the US side of my portfolio. My discount broker is TD and sure how that would work and would like to know your opinion. Thank you

Q: Have been patient waiting for these companies to recover. What is your opinion? Should I sell and move on. Thank you.

Q: Hi 5i Team,

Im looking to replace PD in my TFSA. I thought I was smarter than the market when I purchased it at an average price above $10. I did little homework on the name and now I'm paying the price. I typically have a tremendous amount of patience with investments. What would you do if you owned this stock? I know there are better opportunities out there, but I feel like if oil moves to the upside this name has a lot of potential.

Thanks,
FP

Q: Is it time to average my cost on precision drilling. Own it at $13.00. Insiders are buying. I have held it for so long it seems ridiculous to sell it now but I do not want to wait another four years to maybe get back to even. Is there something better out there to put the measly funds I have left in this company?

Q: I am so far under water on BDI that I am tasting mud, and a little bit underwater on PD. I am thinking about taking the loss on BDI and dumping whatever pennies I get back into PD as a means to tidy up my portfolio. (I also own small positions in VET, WCP, and SGY - all under water as well.) Does this seem like a reasonable approach for someone with a reasonably long time horizon and a belief that the world is going to need oil for quite a few years yet - even if only as a feedstock for other processes?

Thanks - and congrats on the new baby. Exciting times in at least one 5i household!

Q: What do you think of the deal with Precision Drilling? The market seems to like it, do you think this would be a good entry point?

Q: I am interested in buying a Canadian energy services company. Can you recommend two or three, including one with a dividend? Thanks, Bill.