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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: Do you consider any of these dividends to be unsustainable? Any other comments on these companies?
Read Answer Asked by James on December 11, 2019
Q: In a recent answer to a question on an oil company, you mentioned that it is hard to be optimistic on a company if you don't like the management team. So my question is, which of the management teams in the oil sector would you want to align yourself with, and why? Alternatively, which of the management teams would you not align yourself with? Please deduct as many credits as necessary to fully answer my question. Thank You.
Read Answer Asked by dean on November 22, 2019
Q: I have positions in these companies way way under my cost. Looking for a strategy to capture some tax loss without giving up completely in allocation in case of oil turnaround. Consolidation in less number of stocks that represents the best potencial is an option or selling all of them and buying two or three different companies is another option. Appreciate any suggestion. Thanks for your help.
Read Answer Asked by Saad on November 07, 2019
Q: Was listening to bnn today and the analyst made me relook at my dividend paying oil and gas stocks. How would you rank the four of them? And if you think there is a better choice, which one? Not including the majors though.
Read Answer Asked by Todd on October 22, 2019
Q: I hold the above stocks in my portfolio. Thinking of adding QSR. Your thoughts. Or should I keep my cash for better opportunities during tax loss period ? BEW and PNG are my play money. Playing PNG with house money.
Read Answer Asked by Roy on September 12, 2019
Q: These three companies have appreciated during the last week. Natural gas prices are rising. Please explain the reason for the increase and future outlook. Which of the three in order would you purchase and why? Thanks
Read Answer Asked by kenneth on September 09, 2019
Q: At $50ish WTI, if all I cared about was the DIV. sustainability and no bankruptcy, which of the above would you list as best.
thanks
Yossi
Read Answer Asked by JOSEPH on September 05, 2019
Q: Good Morning 5i,

So on this fine Friday long weekend morning, I'd like to pick the brains of people who've "been there and done that" much longer and more successfully than I, and have seen some things in the financial world first hand that I have not.

I want your opinion on oil and gas. Are we not watching one of these classic "blood in the streets" scenarios you always read about as investors and wish you'd had the fortitude to plug your nose and dive in? The shares of almost every publicly traded company in the space are being thrown away for nothing. The good ones, the bad ones, the ones making money, the ones losing money, good balance sheets, bad balance sheets - it's almost irrelevant. If they're in the space they're being slaughtered.

So if the thesis is:

a) it will take a lot longer to power the world with worm casings, pixie dust, and unicorn farts than some would have us believe (i.e. hydrocarbons are not going anywhere in the foreseeable future)

b) a surprising number of these companies have solid balance sheets

c) a surprising number of these companies are earning profits hand over fist, doom and gloom aside

If a, b, and c are indeed true, you'd have to believe a lot of these companies trading at historic lows will eventually make investors a lot of money. Like buying Florida real estate in 2009.

What am I missing? What holes can be shot in this thesis, looking at it objectively?

I take the point that there is no catalyst to change things or excite investors in this space (although I do get surprised from time to time that the fact that a company can throw off ridiculous amounts of profit and return it to shareholders via dividends and buybacks doesn't itself become a catalyst, but I digress...)

I also take the point that these scenarios can persist for a lot longer than people think they can before things change.

Single-company risk is always there, I understand that, but I reject the idea that all of these companies are headed for bankruptcy.

Aside from patience and the stomach to watch your investment get hammered in the short term - where exactly are the risks?? This seems like such a great buying opportunity that I feel I have to be missing something.

Thank you for whatever insight you can share, and happy long weekend to you and your families!

Ryan






Read Answer Asked by Ryan on September 02, 2019
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