Investment Q&A

Q: Hi,
I would like your opinion on Canadian Oilsands. It has an attractive yield, but will it be able to keep dividends should lower oil prices ($75-$85) persist?
Thank you.

Q: The oil sands are in a rough context. Do you foresee a reduction in dividend for COS ? If so, is this likely to lower further the stock price ? As far as I can see, only Imperial Oil(IMO) has declined less than others in the oil patch. Is all this something transient ? Would you advise awaiting the passing of the storm, and not change anything ?

Q: https://www.google.com/url?rct=j&sa=t&url=http://business.financialpost.com/2014/10/09/peter-foster-look-whos-demonizing-canadian-oil/&ct=ga&cd=CAEYBCoUMTM4MzI4MDkyMTIyODQ5NTU3NDUyGTlkYWUyYWQxMjY0MDFlY2M6Y2E6ZW46Q0E&usg=AFQjCNGwShKkotWE0qYczudb26li4x9bCQ

Mr. Hodson, is the movement mentioned above likely to hurt seriously the oil sands companies referred to ?

Q: Team - with the recent pullback, COS, FRU and BTE are looking interesting to add to a portfolio for both income and perhaps over the mid to long term some capital appreciation also. Do you agree with this observation? Would you consider buying now or wait a little longer to see if they continue to drop? Many thanks in advance.

Q: Good afternoon....I was wondering what your thoughts on COS (CDN Oil Sands) with a dividend of 6.5%...basically form Income perspective as I would not anticipate much growth...based on the current volatility in the oil markets...would you say the dividend is safe? looking at longer term hold 3 to 5 years..

Q: 10:25 AM 5/29/2014

Hello Peter
I have been watching Canadian Oil Sands COS for a long time. I am looking for a regular income from another very stable low-risk company with a dividend yield in the 5% to 6% range, for a permanent hold. I already own 4 big banks and SLF and GWO, PSK, BDT, BTE, ENB, ENF, PKI, EMA, FTS, TRP, and PPL.

COS has a low debt/equity ratio of 34% and a forward P/E of 12.9 according to Morningstar.
The Company has steady revenue and margins, slowly rising dividends, and a payout ratio of about 82%.
The Company has only about 25 employees so the overhead must be extremely low. Their only job is to contribute their ongoing share towards their 36.74% working interest in Syncrude Ltd.
COS's only product is light sweet crude so that is eminently saleable and always commands premium prices

So my question is: Why is 5i so cool on the stock? I know it doesn't have strong growth ahead compared to some but the company has a very stable business, sells a product in high demand and has many decades of reserves...... so what's not to like?

If I don't buy COS then the only other possible "Stalwart Core Holding" Alternatives that I don't already own seem to be :
MKP, FRU, FN, CTY, AW.UN, GH, KMP, BEP.UN, and AD, but most of these have individual flaws of some sort or are less likely to be able to maintain or grow their dividends in the event of a major market correction.

My guess is you may prefer BEP.UN to COS despite BEP's terrible payout ratio, but it is just a guess....I am open to any comments and suggestions you can make, and any other stocks to consider, and to your informed opinion on COS.

Many thanks......... Paul.

Q: I just read the following release: (COS): Canadian Oil Sands Limited ("COS") (TSX:COS) today announced that Syncrude has begun unplanned maintenance work on Coker 8-1.
Is this likely to affect COS price / dividend? Thank you.

Q: I bought COS for its yield some time ago at a cost of $38. I've noticed other energy names gaining momentum and with the anti-Oil Sands rhetoric persisting I'm wondering if there are better values (with good yields) to be had. In terms of energy related stock I also hold ERF, PGF & VET.

Q: What did you think of the COS 2013 financial results?

Q: After years of consolidation, do you think Canadian Oil Sands is due for a revaluation by the investment community? Looking at their capex programme, their big expenditures are out of the way in 2015. With the past CEO stating that their objective is to pay out free cash flow to shareholders, I think COS could increase the current dividend from $1.40 to $2+ if synthetic oil prices stay $90+ and production volumes stabilize.

Looking forward to your views. Thank-you for efforts.

Q: Do you have any current views on Canadian Oil Sands? Their dividend seems quite high, is it safe or a about to be cut? Thanks.

Q: Peter. I own enough Freehold, Crest Point,Baytex and Vermillion. I am looking to make a heavy oil investment. What do you think of Canadian Oil Sand, C.O.S? I know many people would take Suncor, but I really like C.O.S.dividend. Is the company well run, and where would oil have to drop to till the div. was in trouble? Thank you Ken

Q: It has been a while since you have given any thoughts on COS. What are your thoughts at this time? I have had this for several years.

Q: Mr. Hodson, would you have any preliminary reaction to COS's just released quarterly results today ?

Q: What happened to cos?

Q: Is COS a buy?

Q: cos- I have held this stock for several years and paid approx. 24.00 so down a bit. A fellow called Jeremy Siegel had written a book about stocks to hold for a long haul- would cos- sort of fit into that category? it pays a good dividend and as long as I continue to reinvest that dividend- I should eventually come out fairly well?? What is your opinion on this?? I hold the stock in my RRSP and in my Cash account.

Q: Could I please have your opinion on COS. Do you feel the dividend is safe? Do you prefer another name in the oil sands sector?

Q: Very bad day today (January 31, 2013) for COS and CNQ. Anything obvious specific to the companies, or is this related to the end of the month ?

Q: COS reported its quarterly results on October 29. The market reacted positively, as the share price went up 5% as of today. Do you see anything meaningful in terms of making the company either
more or less attractive ? Any obvious comparison to be derived from SU's results which were just reported ?