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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: Hi, Imperial Oil announced strong results today a nd stock popped by over 7%. Also, Chevron and Exxon reported blowout quarters. Is this indicative of solid results from CNQ and SU, ( which are 5i favorites in the sector and owned by many of us )in coming days and is it reasonable to expect a similar stock performance ? Thanks

Read Answer Asked by rajeev on October 31, 2022

Q: Hello 5i Team

I track the NCIB purchases by Imperial Oil and have noticed the following:

Exxon Mobil reports their insider sales to IMO on a weekly basis (shows up on both 5i data feed and SEDI weekly reports).

Imperial Oil purchases on the open market are only reported at month end, showing the daily purchases.

I have noticed with other Canadian companies (CNQ and Suncor) appear to report monthly however they only report the months total purchases and not the daily purchases.

Question

Is Imperial (i.e. Canadian companies) only required to report their NCIB purchases on a monthly basis? This is in contrast to the US SEC requirements which appear to required daily reporting on a delayed basis.

Is there a website that lists the requirements for NCIB purchases or would I have to consult the relevant TSX guidelines or securities legislation?

Thanks

Read Answer Asked by Stephen on October 17, 2022

Q: Hello 5i Team

Imperial Oil (IMO) completed its Significant Issuer Bid (SIB) on June 15.

IMO then announced a new Normal Course Issuer Bid (NCIB) commencing approximately June 29.

In the 2nd quarter financial report, IMO has stated the NCIB will be completed by the end of October, based on purchasing the maximum allowable shares per day as per the NCIB.

Question, if IMO completes the NCIB on November 04 based on the maximum daily share purchases can IMO commence a second SIB in the one year period following the completion of SIB completed on June 15 (i.e. commencing early November or December 2022).

If IMO cannot undertake a second SIB, would they be limited to either increased dividends or a special dividend or are there other options to distribute excess capital back to the shareholders.

Is there a readily available website source for SIB, as recently other companies have announced SIB (E-L Financial, United Corporations, Economic Investment Trust)? Maybe as they are announced they can be included on your dividend announcement page?

Thank you

Read Answer Asked by Stephen on August 22, 2022

Q: What is your opinion of this ETF for a core long term holding for exposure to the oil and gas industry? Is the MER high/low in your opinion. What alternatives if any would you suggest? Thanks

Read Answer Asked by Kolbi on June 07, 2022

Q: Good morning. I’m interested in following a few Canadian refinery stocks. How do I do a search for possibilities through this site and if you could update the companies
Thank you kindly and have a terrific day

Read Answer Asked by Marla on February 07, 2022

Q: Thank you for your prompt and your customary excellent answer to my earlier question!

Q: 1. May I then request you to give me a concentrated collection of small/midcaps energy stocks that you think will be comparable to an ETF? say ZJO?

Q 2: Big and mid to big caps that are comparable to XEG?

I will leave the number of stock selection to your discretion.

Many thanks.

Read Answer Asked by Savalai on November 09, 2021

Q: Good Morning 5i,
I would appreciate knowing your outlook for Gibson Energy (GEI). In the past couple of months there was an article in the Globe & Mail that there could be more to come on the M&A front. It listed several companies that could be up for sale and GEI was one. The article said that GEI management was looking out to improve shareholder value and company sale (not just assets) wasn't out of the question. Since then GEI has become the first energy company in North America to link it's credit facility to meeting sustainability objectives. The stock has not performed as well as other energy stocks during this time and I have continued to hold it for the potential takeover aspect. Do you consider a take over is possible and if so, what companies do you consider would be potential candidates to takeover GEI? Thanks

Read Answer Asked by Gordon on May 19, 2021

Q: top 2 choices, 1-2 or possibly 3 year term, and why? Thanks

Read Answer Asked by Ziaad on December 24, 2020

Q: With respect to Howard’s question re: IOL, to my knowledge their real estate dealings are managed through Devon Estates Limited, which I have seen described both as a “non-distributing corporation” and as a subsidiary of Imperial Oil. This may account for why real estate (versus “land”) does not show up in the filings of IOL proper.

Read Answer Asked by Stephen R. on October 28, 2020

Q: Do you have any insight on the topic of the real estate holdings of this company? I know they sold an impressive tract of oceanfront property in Greater Vancouver in recent years, and a gas station site next to a Skytrain hub is being converted to a high density apartment project.
I'm unsure if accounting rules still show that real estate is to be carried on the books of a company at the original cost. I'm also wondering what percentage of gas station sites and other land holdings are company-owned or leased by Imperial Oil. Thank you for anything you can offer toward gaining an understanding of these real estate values.

Read Answer Asked by Howard on October 27, 2020

Q: I intend crystallizing a loss on CNQ and was trying to decide on buying a company in roughly the same business so that I stay in the market segment. SU might be the obvious choice but have some already. Can you suggest some alternatives from the those noted or others, preferably with a divided.
Btw I find the dividend updates very useful.
Thanks

Read Answer Asked by angus on October 19, 2020

Q: Which oil companies are your best Equipped to make it through the current mess? Could you make a top 5?

Read Answer Asked by Mark on April 22, 2020

Q: Hello there,
I know oil is ugly here but looking at these two. Which one has the stronger balance sheet and are there any dividend sustainability issues? Suncor literally just increased their dividend 11% last month and announced a buy back. I think they would lose a lot of credibility if they turn around and cut it now? easier not to proceed with the buy back?
thanks

Read Answer Asked by Chris on March 19, 2020

Q: Hi 5i team,
I was wondering what your opinion is of the Morningstar Quant reports which can be found within TD Direct investing. For example, each of these stocks are noted as ‘undervalued’ or significantly‘undervalued’. As well, they have little or no moat, and some are high or very high risk. Their stock prices are/have dropped a bit.
Would you consider it realistic decision making to include them in the mix of info resources?

Also, could you kindly rank these stocks if one were doing this year’s TFSA amount- it’s a small sum so is it best applied to one stock or divided?

I have SU and CNQ, similar amounts invested in each and both are above water a little.

Please deduct however many credits you like. Thank you for helping me!

Read Answer Asked by Hilary on February 05, 2020

Q: Hello Peter, a 'Market Call' guest whom I've learned to listen to closely over many years (you are the other; hence my 5i membership) recommended Imperial Oil in that sector, largely because he perceived its downside risk to be minimal due to its current price relative to book value. I have a large position in CNQ and a smaller one in Tourmaline. But I'd like to add to my O&G holdings with a stock with a 'lowish' downside. Would you concur with the IMO recommendation for this purpose, or would you suggest I just add to the CNQ and/or Tourmaline. Thank you!

Read Answer Asked by James on January 12, 2020