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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: Do you think Surge Energy is worth holding at current levels given the risk of a dividend cut? I understand their hedging program but as investors continue to panic sell the yield has become noticeably high...knowing the company the way you do, what is your best advice. Much thanks as always, Curtis
Read Answer Asked by Curtis on October 29, 2014
Q: Hi,
Could you expand on your answer regarding your thoughts on the oil commodity backdrop. Charts are suggesting longer term high US $, a long US Stock cycle & a long down period for commodities. Meaning stocks like SGY, even though good on fundimentals might suffer from being in an "out of favor" sector & therefor have little upside. So your insight into how long you thing oil might be on a down cycle.
Read Answer Asked by LJ on October 07, 2014
Q: I continue to be concerned about SGY because of the commodity price action in the background. I inquired late aug about same & you were strong on holding thru any correction. However I am hearing more talk of a long term US $ bull mkt which in the past has driven non commodity stock pricing upward & driven commodity pricing downward. Do you also now feel that we have entered a secular bear for commodity pricing & would that not push oil stocks like this out of favor regardless of dividend? Dividend is nice but 9%/yr pales with a 25% drop in a month.
Thx,
Read Answer Asked by LJ on October 07, 2014
Q: Everything is getting hammered this week, but i do not understand the complete devastation in surge, if as you say the payout ratio is 65 per cent with oil at 90. Dollars, then at what point will surge have to cut there payout, now yielding over 9 per cent at a price of 6.60. It seems to me like this selling in surge is way over done, it is down at least 25 percent in less than a month. And why are insiders buying, they are getting killed. Dave
Read Answer Asked by david on October 02, 2014
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,
Read Answer Asked by Ilesh on September 19, 2014
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
Read Answer Asked by Cam on September 15, 2014
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