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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: I currently have a 12% weighting in Energy. 60% of which is split between ENB and PKI as my core holdings and the remaining 40% split between VET, WCP, TOG, RRX and CJ. I am comfortable with the ENB and PKI but I am wondering if I should make any changes to the other 5 holdings. Drop one or two of the weakest and concentrate on the remaining 3 or 4 stronger names? Trim all 5 and add another name? I am hoping the oil rally continues and I want to be in the best position to take advantage of it.
Many Thanks
Read Answer Asked by Scott on May 22, 2018
Q: Assuming oil prices stay between 70 to 75, which of the following would you recommend first, please arrange in the order of preference for the following criteria :

good management
leverage to the higher sustainable oil price
great assets and net backs
reasonable balance sheet
good Western Canadian price for their oil.

the list which you can add to.


Read Answer Asked by JOSEPH on May 21, 2018
Q: I seek your thoughts on the following: my portfolio is constructed to a max weighting of 4% per holding. As I am retired I now have a minimum 3% div payout requirement. I am a 30 plus year investor in the markets and not shy on a slightly higher volatility and risk. I have been out of oil and gas totally over the past few years. I am looking at entering a small to mid cap producer. Cardinal certainly meats the div need but I am concerned about its viability to maintain it. Whitecap is around 3.5% yld and I have held it in the past. It is much larger, but which one do you think has the most capital growth from here, and is the most sound investment or would you go into both? thank you
Read Answer Asked by James on April 20, 2018
Q: Could you please rank these stocks for growth assuming the sector ever improves.
Could you also do another list of just the dividend payers ranking income strength (safe and/or growing divi)

Read Answer Asked by EVAN on April 05, 2018
Q: You answered a question the other day about Cardinal Energy suggesting they were highly leveraged at 4x cash flow. Their presentation at $50 WTI and a .80c Cdn dollar, suggests they are just above 2x cash flow not 4X , that their POR is 40% regarding the dividend. Since 2014 and thru much lower oil prices they have kept that ratio between 31 to 49%, given the higher oil prices now it seems to be sustainable. WTI now exceeds their guidance as well as the CDN dollar at .77c they should be in fine shape on both counts. The company is looking at increasing amounts of free cash flow in 2018 given where WTI is today and the exchange rate, not to mention the WCS differential which is in their favour as well. Cardinal has one of the lowest decline rates in the industry so can spend less on maintaining or growing production as well. Those numbers you used look more like Bonterras- BNE then Cardinals. I don't understand where you are getting your numbers, please help me understand?
Read Answer Asked by Wyatt on November 02, 2017
Q: I am considering to re-enter the energy market. Of the four stocks here, CJ, WCP, VET and TOG, how would you rank them in terms of their potential combined returns (growth + dividends, and dividend sustainability). Thanks.
Read Answer Asked by Victor on November 01, 2017
Q: I used to own CJ and with the downturn in the energy market I sold all my O&G holdings along with CJ. I just noticed in the last week or so that insiders who already own substantial shares in CJ have been adding more company's stocks to their portfolio.

Can I used a horse betting analogy of "following the trainer to the betting window" here? I notice the company has already cut its monthly payout by half earlier this year (since 2/2017). Is this payout at a rather enticing level (still about 8%+) sustainable based on its current production level? Do you foresee further dividend cuts?

Thanks for your insight.
Read Answer Asked by Victor on November 01, 2017