Investment Q&A

Q: About 4 months ago, and just before becoming a 5i member, I bought 300 CPG in a TFSA, mainly for income but also a bit of growth (I'm currently under water on the stock price). Since joining 5i, I've read repeatedly that you're not keen on CPG. Would you suggest that, despite holding CPG for such a short time, I would do better to take my losses and move on to SGY, for example? The yield is even better than CPG, but does the smaller market cap make it much riskier?
Thanks for your insight. Chris

Q: planning to sell CPG and switch to another O?G div. payer like TOG or VET for growth/income - your thoughts - as always thanks

Q: For resource exposure, I am concentrated only in oil & gas (likely because I live in Calgary). I have full positions in Cenovus, Suncor, and am overweight in Crescent Point. Since last fall, I have also purchased half positions in VET, WCP, TOU, Surge, and Bellatrix (based on 5i responses). I am looking to unload my Suncor, Cenovus, and Crescent Point positions in favour of adding full positions to the others. Does that sound like a reasonable plan to you and why are the analysts so bullish on CPG when I know that you are not enamoured with it?

Q: CPG shares have been flat for a long time, and I am thinking of selling. However if you see any upside in the immediate future, please advise and I will hold them.
Regardless, please recommend some solid growth stock(s).

Thanks

Robert

Q: I'm currently holding Crescent Point Energy (CPG) and Whitecap Resources (WCP). Over the past year, I've done well on Whitecap but remained relatively flat with Crescent Point. I'm now considering moving out of one of these two names and into Surge Energy as I feel the shares of SGY represent better growth potential while, at the same time, offering a comparably attractive and secure dividend.
Your thoughts please.

Q: Hi Peter
Just a follow up on Crescent point energy if you don't mind. Looking at Q-3 cash flow of 543 million, less capital expenditures of 456 million gives them 87 million of free cash flow. My question is why wouldn't they take off the 115 million used for dividends and financing activities as well before arriving at free cash flow?

Thanks Gord

Q: I need some education. A high percentage of Canadian analysts recommend Crescent Point Energy (CPG). My own admittedly poor analysis shows CPG to have a net annual income of about $270 MM or about $0.55 per share…this seems to move around quite a bit quarter to quarter. Assuming I am in the ballpark, and since the current share price is about $40, this suggests a PE ratio of about 70. The current dividend of $0.69 per quarter ($2.76 per year) is not close to be supported by earnings so the company must be issuing new shares (DRIP program) and/or borrowing funds to pay the shareholders. When comparing very quickly using Goodle Finance to Vermillion, Suncor, CNQ, and Husky, I find that all are paying out more in dividends than they earned but none are as bad as CPG. If I am correct why is CPG the darling of analysts? Secondly, how can the other companies continue to pay more than earnings? Isn’t this a concern? Thanks in advance for the help in understanding both CPG and the oil and gas producers in general.

Q: I am looking at adding some Crescent Point Energy to my portfolio (CPG-TSX). I see the dividend of 7% as very attractive and the value of this company being quite attractive. Is now a good time to look at taking a position in CPG?

Q: Hi i5 Team,
If I were to sell my CPG shares, which I have held for 3 years and a small gain, what would you suggest I replace them with?
Thanks very much for your advice.

Q: Hi Peter. I watched BNN and subscribed yesterday. I have had CPG for a year due to the SE Sask location and the dividend. Is it sustainable and will it continue to grow? Thanks

Q: Hope your European trip was enjoyable & profitable!
Would like to reduce my exposure to Western energy. Presently have ALA, ARX, CPG, PKI, PPL,& KEY - all in a cash acct. Have held all for about 4 yrs. & been quite profitable. Just too much concentration. As always your opinion & recommendations are appreciated.

Q: I am interested in buyihg Crescent Point (CPG>UN). It has a 7% dividend. Is there any reason that it's not showing it's P/E?

Q: I have owned Crescent Point CPG since 2008. I have been happy with the gains I originally made along with the nice monthly dividend. I think it is time to sell it given the rather poor performance that last few years. What would you suggest to replace it in this space? I don't have any other oil producers in my portfolio, just some pipelines. Joe

Q: Hi Peter & the 5i Team,

You've said in the past that CPG isn't your favourite company in the O/G sector and I certainly agree with that assessment. Based on my results, even with the generous DRIP program and its 5% discount, and after holding CPG for several years, I'm still slightly underwater. It appears that CPG is incapable of breaking through the $40 mark. (Although it pays a hefty dividend of over 7%, its price has flat-lined).

Many analysts rate CPG as "sector outperform" or "strong buy", etc. etc., but my results certainly prove otherwise. I have (fortunately) only half a position in CPG, and bought it at that time due to its inclusion as a so-called "dividend aristocrat", and not knowing about 5i. (!) So at the present, I'm frustrated knowing I'm not reaping the benefits of an alternative O/G stock like VET.

My question is this: What "non-emotional" criteria should an investor use to determine if and when a stock should be sold?

Thanks in advance.

Q: Hello Peter and the 5I team
I was curious if the average retail investor should be concerned about the CPG CEO selling 100,000 shares of CPG in the last 7 days?

Q: Peter; Is there anything you can think of that would help CPG gain back some market momentum? It seems stuck between $35-$40. Pays a nice div. but pretty dull. I am thinking of a switch to Goldcorp for some upside potential. Thanks. Rod

Q: Hi Peter. I notice that CPG is ending their Premium DRIP program. Will this have much effect on share issuance and therefore earnings per share? Thanks

Q: I would appreciate any thoughts you have on the latest earnings from CPG and CNQ.

Q: CPG - do you see any evidence that the American investors are getting back into Canadian oil stocks? thanks

Q: Given the tragic crash in Quebec involving oil on railcars what effect would this possibly have on companies like Crecent Point Energy that transport a lot of their oil by rail with the intention of increasing this? Thanks and keep up the good work. This service is excellent and one of kind available in Canada.