Investment Q&A

Q: Hi Team, As of writing this email, SGY (Surge Energy) has a yield of 7.9%.
Is that not to high? The share price needs to move up and we should be around a 5% div yield level which is closer to where most of the small-mid cap oil & gas dividend payers are. Could you enlighten me? Thanks,

Q: Hi,
I hold SGY but continue to be concerned about the backdrop on oil. Looks like oil is headed resistance at $86. What is your take on the mid & long term prospects for oil price & how SGY will fare in a lower oil price environment if that is what you foresee.
thx

Q: Hi Peter and Team: Hope all is well with your ride. How would you rate Surge Energy, (SGY) vs. Rock Energy, (RE), or is their another similar energy play you would rate higher.

Thanks, David

Q: SGY Surge energy , Can you please update me on the 3 biggest inside
holders of this stock , No of shares held , average purchase price .
What is the percentage owned by the top combined 3 versus
the total number of shares issued . Many thanks Rick

Q: Hi Peter. I've been reading that the US has been steadily reducing its foreign oil imports from most countries except Canada. I'm sure Canada's turn will come. Oil prices are dropping. Do you see the cost of production in Canada too high and thus reducing profits for Canadian companies. I have done well with Surge and Suncor thus far. Would you recommend reducing my position in these companies. (taking some profits)
Thanks for your great advice over the last year.
Cam

Q: Hi Peter. There have been some negative articles regarding Surge energy. Are you still comfortable with it. I'm up over 30%. Is it time to sell?
Thanks. Cam

Q: Morning Peter & Team,

I am looking to gain exposure to the following three sectors/industries for my dividend portfolio:

- Energy
- Pipelines
- REITS

What would be your pick if I were to buy full position for each next week?

Cheers,

Richard

Q: Hi Peter and Team, I have recently heard a number of analysts/portfolio managers comment on Surge Energy as having an unsustainable model due to their strategy of acquiring assets past their prime , with high decline rates. The preferred model would be one such as Crescent Point Energy which owns assets where future production has more upside. Could I please have your thoughts.

Thanks, David

Q: Hi Peter & Team, SGY (Surge Energy) has a yield now over 7%. Should i be concerned? Seems like to me that the market is still perceiving this stock as high risk. What are your views? Thanks

Q: I see the techinicals on oil have broken down with a next support at $86. Would this be a good time to step out of SGY or partialy step out due to its normal volitility as a junior?

Q: re: SGY Surge & John O'Connell' comments

One of my biggest challenges is "sifting through" comments made by industry guests/pundits/experts whether on the TV, radio or in an article. I often wonder if there is any ulterior motives at work behind what they say and have no doubt at times there is. After all we are talking about money.

Mr. O'Connell' comments on Surge for me however made sense, and it isn't the first time I have heard similar comments of this kind regarding this company.

He feels the growth per share would be considerably inferior if the company wasn't paying such a large dividend. He was very complimentary regarding Paul Colburn' management abilities and referenced what he did at Cresent Point. However when it comes to Surge, John mentioned Paul made allot of acquisitions, paid brokers allot of money in commissions, and that production/share growth hasn't been all that spectacular. He went on to say he wished Paul wouldn't pay such a high dividend and that he's "on a bit of a treadmill" trying to keep up with high decline rates and that the high dividend is a crushing problem for him as it is very expensive money.

I have done very well with Surge up to this point (40% after dividend) and would like to hear your thoughts regarding Mr. O'Connell' comments and what the 5i Team expects for Surge moving forward.

As usual, thank you for all you do... would be lost without you

Gord

Q: Please give us your opinion on the results posted by SGY and WCP and which do you think will have the better capital appreciation over the next 12 months.

Q: WCP/SGY: Hi Peter and team. I own both and am considering adding more, potentially of each. Benji Galander, truly a contrarian, is decidedly negative on SGY considering it very risky with very little cash. How would you rebut and how do you view a decision between these two today? Or should I also be considering TORC or others in the field?

Thanks

K

Q: Hello Peter and Team,
I am looking to add a little punch to the Energy sector of an otherwise diversified portfolio. Energy currently makes up almost 20%, so I am not looking to add, but to hopefully refine. I am considering a swap of Surge (SGY) for Vermillion (VET). I like them both, but am leaning towards the income feature of Surge as well as the continuation of good results as was indicated in the last Q report. Could I have your thoughts to this?

Q: Hi Team, Could you please comment on the earnings reported by Surge Enegy (SGY) today? Thanks,

Q: I own SGY now and would like to add more. Is now a good time or wait for a pullback. Also, is this the same management at surge since 1998. SGY was quite a bit higher in 2006 and also in 2012. Why the downfall? I just purchased SGY about 3 months ago and assumed it was a recent new company. Thanks, being able to buy and ask questions later is a big, big help. This 5i is the best and I have purchased about 8-10 other investment letters and some where real rip-offs, promoting THEIR stocks so that they could profit or get out?

Q: Hello 5i - as always thank you for all help.
I am trying to decide between BTE & CPG, or another dividend paying energy company. Your opinion is much appreciated.

Craig

Q: Re SGY - I've heard it said Surge is similar to an early stage Crescent Point story as they are intending to acquire and build out substantial resources. Do you agree with this and if so, do you have any timeline guesstimates that might indicate how long would be an appropriate hold period, in order to let them work their plan and potentially see much higher share price? Thanks

Q: Surge Energy has been VERY strong over the last week while the rest of the oil stocks have been relatively weak. Any rumours and news that might be causing this?

Q: Is Surge Energy a suitable investment for a conservative income oriented investor? I currently own BTE, CNQ, SU. Thank you.