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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: My allocation to US financials is higher than I had planned at approximately 26 to 28%. I do not HAVE to sell, not having strong ideas where to redeploy. However, subject to your input, I thought it might be prudent to sell or trim. (Selling or trimming would also provide cash reserve in case markets faint-- although 'gathering' dry powder is often counter productive). I ask your input, with reasons, on which of the following financials you would trim or let go entirely:
- WFC ; KIE (US insurance ETF) ; Lloyds Bank London (the ADR listed as LYG)
- KKR; BX (Blackstone)

I read various reports and did research. I didn’t find THAT much that I didn't like in the above. I am hoping you can tell me which ones are likely to show least total return, and why. I’d be grateful for your suggestions supported by your reasoning and any other thoughts you have. Many thanks
Read Answer Asked by Adam on November 15, 2017
Q: I hold several oil and gas exploration & production (E&P) companies. On every one of them I have significant losses, as many people do. I also have two oil refiners: VLO and MPC. I am shocked to see capital gains on both. Do oil refiners not move down when oil prices go down? I didn't see CONSISTENT correlation so I suspect I may be doing something wrong. Thus I seek your insight and deep, deep thoughts. Are both these companies just refineries? Or do they have some exploration and production in their operations ?
Would you continue to hold MPC and VLO ? If you wanted to realize cash for deployment elsewhere, which one (IF ANY) would you sell-- and WHY please.
Thank you
Read Answer Asked by Adam on November 15, 2017
Q: I am a retired, conservative, dividend-income investor. I normally would describe myself as a "buy and hold" investor, using a "trim and add" strategy that has served me well over the years. I am also aware that one should expect roughly a third of one's stock picks to not work out, although my track record is better than that.

The quandary I am in relates to PEY. Great stock, good management, nice dividend, however poor capital appreciation since I bought in Nov '16. My current allocation to energy is 10% of my equity portfolio. Fortunately PEY has only a small weighting (<2%).

Question 1 = I am down roughly 45% including dividends. We are now in tax loss selling season, so expect some more downside to PEY. I could definitely use the capital loss, to offset significant capital gains this year. Sell now, wait 30 days, rebuy?

Q2 = There is also the "trapped due to no pipeline access" theory...any light to shed on this? If PEY is trapped, is this worth rebuying, until the pipeline issue is remedied? If I wanted to replace PEY with another dividend payer = any suggestions for those that are not "trapped"?

Q3 = I see the average 1 year target price is $27---based on what?

Again, I usually hold for the long term...eventually good stocks work their way through these things...not sure this time. Your thoughts please.

Thanks...Steve
Read Answer Asked by Stephen on November 15, 2017
Q: Greetings 5i,

CVE CEO regarding the Weyburn sale stated “Net proceeds from the Weyburn asset sale, combined with the other three divestitures announced earlier this fall, will position us to retire the entire $3.6 billion bridge facility associated with the ConocoPhillips asset purchase by the end of 2017.”

Additionally Soros Fund Management took a 1.2 million share position on CVE on tuesday?

What are your thoughts?

Cheers!
Read Answer Asked by Duane on November 15, 2017
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