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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: What is thoughts on this company's future and would you purchase at this level with a 1 year time frame. Thanks
Read Answer Asked by Ian on November 28, 2014
Q: Hello Peter, Could you give me your thoughts on Freehold compared to Pairiesky? Do you prefer one over the other? Is the decline in their price due to the panic selling or is due to oil price decline?
Read Answer Asked by pietro on November 28, 2014
Q: I fortuitously sold Suncor back in June but am now wanting to buy back into oil and gas in my wife's TFSA account. I have badger (bad) and Superior Propane (spb) in another rsp account but this would be more of a direct investment in the beleagured oil and gas industry. I have 10 000 dollars of room to invest with a long term window and was wondering which two of sgy,su,spe,or su you would recommend. Do I go back into the rock solid dependable Suncor or seek more growth with the likes of a Surge or Spartan or ???? Thanks
Read Answer Asked by Dennis on November 28, 2014
Q: Do you think a lot of these companies will be adjusting their 2015 budget ? These dividends such as TBE at 15 percent and 1.20 price would seem much at risk.
Read Answer Asked by terrance on November 28, 2014
Q: As a portfolio decision, I know you usually trim a position when it reaches 9-10%. However, when do you decide to add to a name when it drops from say a 5% position?
Read Answer Asked by Sheldon on November 28, 2014
Q: Greeting, Peter & Co.
I fund and administer RDSPs for three young girls on the autism spectrum. Although I still have a 10 year time horizon I fortunately have no energy exposure in these portfolios. I am considering a small position in High Arctic Energy (HWO) as well as a position in a, yet to be determined, large cap energy company. My rationale is:
HWO has operations in Papua New Guinea (PNG) (74%) and Alberta (26%). Although HWO is not a typical Canadian energy services company its 6 month share price decline is identical to that of Calfrac and slightly less than some of the other Canadian companies in this sector. The PNG operations include services and equipment rentals to natural gas companies that provide natural gas to a new LNG plant that has very long-term supply contracts. The Alberta operations, in my opinion, containing more risk than PNG, are similar to those of other Canadian energy service companies.
HWO had a good Q3 and the balance sheet is solid. There is enough cash on hand to cover the CAPEX for the additional rigs that will be delivered in 2015. The dividend was recently increased by 10% to 5.3% at the current share price of $3.73 leaving a very low payout ratio.
Please advise me of any errors in my numbers or logic and your assessment of HWO.
With great appreciation for your most valuable service.
Ed
Read Answer Asked by Ed on November 28, 2014
Q: Considering the Canadian $ vs US $ does it still makes sense to use CDN $ to buy US Equities. Looks to me like you would lose 15% right of the top.

Thank you as always for a great service.
Read Answer Asked by Craig on November 28, 2014
Q: Are you familiar with PKG.US? What would be your opinion, and would you prefer GPK.US?
Read Answer Asked by Adam on November 28, 2014
Q: I hold ALA, IPL, TRP, ENB, KEY, EMA & FTS. They are done with oil. I am thinking of selling some or all (in light of oil) and purchasing Blue Chip US Equities. Your thoughts would be appreciated.

Thank you as always.
Read Answer Asked by Craig on November 28, 2014
Q: Looking at the OPEC correction is there an underlying reason why PD took such a severe pounding knowing that their business model is sustainable. I bought in to-day and am quite comfortable with it. I feel sometimes that these big days are more panic driven or is it the shorts trying to kill the small guys.I guess I'm looking for logic in a big marketplace. Thanks Doug
Read Answer Asked by Doug on November 28, 2014
Q: I am not overly exposed in this area. Given todays drop can you recommend one or two stocks that have been oversold?
Read Answer Asked by Danny-boy on November 28, 2014
Q: As a holder of a full position in BTE I have no intentions of jumping of the cliff.
There are two things I would like to see BTE do
1 Declare their dividends by quarter.
2 If they feel the dividend is not sustainable cut it now and get it over with.
I feel BTE is a good company with a top management team and a above average asset base EG cost at Auroa are under $50 and their hedging is as good as any .
Could I have your comments on my assessment.
Stan

Read Answer Asked by Stan on November 28, 2014
Q: I am in a profitable position on the following, each of which is less than 3% of my portfolio:- CANADIAN EQUITIES-ARE;AV.UN;BAM.A;BLX;BYD.UN;CHE.UN;CWT.UN;CPG;ENF;EMP.A;IPL;HLF;IIP.UN;KEY;MG;PLC;PKI;RPI.UN;HCG;OCX;VRX;TRI;STB;UNC.
US EQUITIES - AIG;AAPL;CCF;BBH;MSFT;TWX. IN YOUR VIEW, SHOULD ANY OF THESE BE SOLD AT THIS TIME? - I AM PATIENT AND DO NOT NEED THE CASH. THANK YOU IN ADVANCE FOR YOUR ADVICE.
Read Answer Asked by Harold on November 28, 2014
Q: Could you tell me what percent of WSP's work is usually oilfield related? And more specifically, is there a chance that some of the projects they have planned for may be cancelled due to low oil prices?
Read Answer Asked by Duayne on November 28, 2014
Q: I hold Baytex, Crescent Point and Surge. I went to each website for information. Baytex is hedged 24% in 2015 and has a Debt/FFO of 1.9 although their significant debt is not due until 2021. CPG = 37% hedged and 1.1 debt. Surge = 24% hedged and 1.4 debt.

I am a retired dividend investor. Regarding dividend protection, I suspect BTE is the most at risk. Do you agree?

What about shuffling the deck...sell BTE and allocate some of the proceeds to CPG and SGY?

To diversify within the oil & gas sector, which dividend paying natural gas stock would you recommend?

Thanks,
Steve
Read Answer Asked by Stephen on November 28, 2014
Q: Hello Peter & Co,
Judy asked on Nov 27 about withdrawals from a RRIF. I am 71 and I understand that in a RRIF any withdrawal from any type of security is considered as retirement income; it is treated as cash and therefore taxed as such. In a tax sheltered account, there is no such thing as capital gains or dividend tax credits; when an income is withdrawn the whole amount is taxed as cash income. The reason is that all contributions one has made to an RRSP (within the prescribed limits) were tax deductible. The taxes one has not paid then will have to be paid later but, in counterpart, all the gains made were free of taxes thus boosting the compounding effect.
Regards,
Tony
Read Answer Asked by Antoine on November 28, 2014