Investment Q&A

Q: In my wife's TFSA we ended up with a bunch of Peyto stock that essentially I did not liquidate in 2020 because by the time I accessed the account it was sort of too late. In a fairly typical example where the best investments are the forgotten ones, it has swollen to a major part of that account. What are your thoughts on its run, its current debt and its potential. I will be reducing the holdings due to the position size but I have been reluctant to sell much while it has been on a (volatile) run up.

Q: what top 5 small cap resource companies do you like in todays market or do you think that there are other sectors to keep an eye on instead

Q: Do u believe Nat gas continues to go higher going into the winter season? If so …what are your top 5 stocks in this sector to look at

Thanks

Q: what is your view on this company? prospects for natural gas in North America ?

Q: I own this stock because they are the lowest cost gas producer in Canada and I always thought LNG was a no brainer and would get built in B.C. Today only one facility looks like it will be completed and gas seems a lot less attractive without the possibility of LNG. Is it time to move on although gas stocks still seem cheap? This is my only energy stock. THANKYOU

Q: Canadian Natural Gas producers seem wildly undervalued (to me anyway...) Checking my thesis here: Natural Gas netbacks are showing 40% increases over last year, and 2020 was almost 80% higher than 2019. Carbon sequestration makes maximum sense as an alternative revenue stream, and it appears at least one company (AAV) is doing just that. Valuation multiples remain very low (which is fine if one is going to invest) but it remains puzzling to me. Am I missing something? Or are all hydrocarbon stocks being re-rated (lower) due to ESG concerns? Are O&G stocks the new "Tobacco" stocks (this reference may dates me somewhat...) Any high level thoughts here to help me in decision making?

Q: Hi esteemed analysts of 5i. Love your work and advice.
Now that natural gas prices seem to be moving upward lately, can you suggest which of these 3 gas producers in Western Canada would be the best choice for buying today, and why?
Thanks!

Q: May I please have three or four junior/intermediate gas producers that will benefit from the Kitimat LNG project if/when in is operational in 2023?
With appreciation.
Ed

Q: I am looking to "trim the fat" from my TFSA, which currently holds 20 stocks: ATD, BCE, BMO, BNS, CCO, CM, ENB, FFH, PDYPF, INO.UN, LAS, NXE, NWC, NA, NTR, PEY, PZA, MJJ, TRP, WELL. Are there any positions that raise red flags with you? In addition, could you suggest 3 or 4 value picks suitable for a long-term hold (20 years plus)?
Thank you!

Q: On the supply side, dry gas prices are low and drilling activity has been scaled way back (storage is full to the brim).

On the demand side, the potential for a cold winter on the coasts, increased adoption of EV, conversion of coal to gas, vaccine driven Covid economic recovery, etc.

It looks like there's potential for a pinch in the market on the price of gas. If that was the case (I'd like to hear your thoughts on that), what companies would see the most positive response in share price?

Q: Good morning 5i team,
Which would you buy PEY or BIR ?
Thanks,
George

Q: Seems nat gas has been on an upswing lately. I know you can't buy Canadian equities but would you buy into this trend now you could, and if so, which of the above 3 companies has the most upside. Are there other companies you would recommend?

Q: Hi 5i team,
Peyto has gone from $2 to $3.20 in 2 weeks, any idea for the huge move up?
Is it a possible takeover target since the Assets are worth much more then the stock price/market value at this time?
Thanks,
George

Q: I would like to comment that I think your service is best in class! Question: With Natural Gas near recent all time lows could you suggest 2 or 3 names in this space that could have upside if/when natural gas commodity pricing improves.

Q: Hi Ryan and Peter,

I have held PNE for years and years and have a cost base of $1+. I lost so much money on it that I just sort of tucked it away. Now BMO turns bullish on nat gas, Andrew McCreath says dry gas is the best and PNE has it in spades. Now today the stock is up +20%!

On one hand, it has high debt and they have never turned a profit. On the other, there is large insider ownership and they are still buying.

What is your outlook for the sector? How does this dry gas and your nat gas outlook effect PNE’s projected earnings? Would you average down here?

I was also too chicken to buy birchcliff at 60 cents but should I now get in on this space either averaging down, going with a new company or staying away all together?

Thanks guys! Keep up the great work.

Q: Natural gas has done better relative to oil, and because it's a greener type of energy, I'm considering selling my WhiteCap (at a loss) for PeyTo. What do you think?

Q: Good morning, which is a better buy today for a 3-5 yr hold, BIR or PEY?
Thanks,
George

Q: I would like to harvest a capital loss on Peyto, but still like to be exposed to a recovery.
which would you recommend as a good proxy, WCP may be or which one would you recommend in this environment?
Thank you.

Q: Hi 5i Research Team:

I have traded Forex before and am new to stock trading. 90% of my RRSP, RESP and TFSA is in cash and I'd like to avail the current market conditions by "gradually" buying the dips.. and holding it over the long term, 5 to 10 years. I understand that no one can time the market or its bottom.

After exploring the reports and questions on your site, I have identified the enclosed 29 stocks based on following criteria:
- Current Retracements of > 75% over 52 week high & low
- Dividend Yield > 5% (in some cases, like WEED, which is a bit risky, I understand there's no dividend in the near term.. and I am simply going for the upside swing over the next 2 years... same for CRON and Air Canada)

Considering my 90% cash position and strategy to partially buy in on dips over the next few weeks, can you please advise if my stock selection is sound. In addition to my stock picks, please advise anything else that I should keep in mind.

Thanks for everything you do. Much appreciate.

Q: What are your thoughts about this Company and how it may perform over the next 3-5 years as I see that RBC has it as a income pick. Do you think the monthly dividend stable.

Thanks for your great advice!