Investment Q&A

Q: Hi Guys
What would be your first choice for a purchase in the oil & Gas sector, during tax loss selling season
thanks Gord

Q: I am considering selling Vermillion for the tax loss and buying Arx for the potential in Stock appreciation. Is Arx in a better position to increase its share price than Vermillion?

Q: Hi team
I am in a bit of a quandary, I bought ala a while ago, before they cut the dividend, my average cost is about $ 29, I know the old saying it doesn't matter what you paid for it, its the present that counts, I have it in a tax free account. I am thinking about selling some of it and buying vet, higher yield, but Lord knows that it could be cut at any time regardless of the management says they wont. I also feel that it has a better chance of capital gains in the future. How do you feel about this plan
Thanks

Q: Hello, do you feel the dividend is sustainable as the sector seems to be stabilizing...thinking of taking a small position soon. 5-10 year hold.

Regards, Lee

Q: Dear 5i,
I currently own TOU and VET and wish to purchase two more stocks in the same sector. Can you please recommend two more high quality stocks in the same sector that would complement TOU and VET. I will equal weight all 4 stocks in my portfolio.

thanks very much for your advice

Q: I am thinking about harvesting a capital loss on VET. The stock goes ex-dividend on September 27th. I would probably repurchase 31 days after selling as it is my only energy exposure. Probably have to give up a dividend payment as it pays monthly. Not sure how long the stock bump will last even though there does not seem to be a conclusion to the Saudi war on Yemen. I suppose if I guess wrong and energy stocks stay strong I could buy Whitecap after I sell VET even though I prefer VET as a long term hold. May I have your thoughts?
Thanks,
Jim

Q: Hello,

With energy sector trending up, can you recommend five energy stocks to pick especially with the current situation in the Middle East.

Appreciate your comments.

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.

Q: As we approach year-end, I wonder if you have given some thought yet to tax loss selling opportunities. Almost anything in oil and gas and lots in materials would fit the bill. Will you be publishing a list of candidates as you have in previous years and when might you do so?

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

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

Q: Hi,

I am thinking of swapping my VET position for a position in WCP, mainly from a dividend sustainability perspective and also a future growth potential perspective.

Does this sound like a constructive move or am I misguided or missing something? Are there any other energy opportunities that you would point out instead of WCP for income and growth potential?

Thanks,
Derek

Q: everyone seems to agree that the energy stocks have never been so cheap, ignored by investors etc.
can you see a way for those stocks to start getting recognized, should i start picking away.
i do not own any energy, but these is getting ridiculous.
i think jim cramer or one of those pundits said its because of millenials who hate oil, they are into electric. dave

Q: If you were to be buying one of these today, which one and why?
Thx

Q: With the world feeling a little uneasy about a pending recession, I want to keep only holdings that will weather a downturn. I'm not trying to time the market, and want to hold stocks, that while they may dip, have good balance sheets, good management, and will likely see a recovery. Others I will sell and hold the cash. Above are my current holdings. Do you see any that may be susceptible to excessive weakness in a recession and would therefore meet my sell criterion? Thanks,
Kim

Q: are these stocks a buy at the present price?
Thank you

Q: Do you think a dividend cut would help or hurt Vet considering its dividend is getting lofty ?

Q: In an answer to a previous question you stated that the value of vet was five times its cash flow so I did some due diligence on its cash flow but with little success.What is its current cash flow & its fair value? It closed today at $20.39. Is that above or below its fair value. Thanks , as always, for your help.

Q: Could you please rate the below as to capital preservation and dividend safety. comment on you choices if possible.
ENB,SU,VET,CHR,AD,SPB,BPY.
Thanks
Yossi

Q: VET's yield indicates the market clearly thinks a dividend cut is coming.
IF they did cut the dividend, how do you think the market would react?

Also, how low can it go? At what price(or PE) does it "look cheap"?

Thanks