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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: I hold VET and PXT as my exposure to energy in a non registered account. (I also hold ENB and PPL but consider them more utility). I am thinking of replacing VET with WCP for the following reasons: 1) I get a big tax loss but keep my energy exposure the same. 2) I do not lose much on the dividend and, although I think it unlikely for both, VET is more likely to cut than WCP nad 3) if oil finally recovers, WCP has more torque. Does this make sense?
Read Answer Asked by Don on August 06, 2019
Q: Good morning. I sold these company for tax-loss selling purposes and are wondering if I should buy them back or is there better options? they are all small positions in my well diversified portfolio . wcp and vet are my only oil and gas holdings. i'm a long term investor and can wait but not if any are loss causes. you can deduct as many question as u like .

Thx
Read Answer Asked by Stuart on August 02, 2019
Q: I was listening to the CEO on BNN a couple of days ago and he seemed quite surprised where the price of the stock was given the state of the company. He also reiterated the priority on the distribution. VET is considered, by many, as a well run company in a really bad sector. You would have to go back to 2005 to see the stock below its current value. Given their "rep" as a good company, their current low stock price and their diversification of assets, could one of the big guys (Exxon, etc) take a run them? Would you be comfortable taking a position here?
Read Answer Asked by David on August 01, 2019
Q: Which of these companies do you think has the highest dividend safety? Regarding VET, I am reminded that yield is a function of price and not directly related to performance - a company does not reduce its dividend just because the yield jumps - more likely a buyback if the fundamentals are reasonable.
Read Answer Asked by David on July 30, 2019
Q: I would like your thoughts on my perspective regarding the "a dividend cut may be seen as a positive" angle, with regards to Vermillion.

The way I look at it, against the backdrop of all the other previous oil and gas trusts that have cut their dividend, has there been a company, among this peer group, that has had their share price bounce back after they cut their dividend, and subsequently sustain decent share price performance?

Thanks for your perspective and allowing me to bounce my thoughts off you.

John
Read Answer Asked by john on July 30, 2019
Q: Do you have any sense of what the intensity of a dividend cut would be? Cardinal certainly got hammered when they last cut, but that cut was widely unexpected. In other cases a cut almost seems to give people 'permission' to start buying again, as they've got the expected cut out of the way. Where do you think VET would lie on this continuum?
Read Answer Asked by Peter on July 30, 2019
Q: Please assess the following:

1. they cut did by half
2. stock price goes up a little due to renewed positive sentiment
3. current market reaction overdone ( due partially to "stops"
3. buy backs lift stock price a little.
4. the market still believes in management and business plan and will act accordingly long term
feel free to comment in any way
thanks
yossi
Read Answer Asked by JOSEPH on July 30, 2019
Q: RE: Vermilion Energy results. In a previous answer to a question asked by Mike you said, "There was no word on the dividend". That makes it sound like the company avoided addressing their very high dividend. Not true..
They actually mentioned the high dividend many times today:
1- in the Q2 results
2- twice, answering 2 different questions during the conference call
3- and during a post results interview on BNN
Read Answer Asked by kelsi on July 30, 2019
Q: Hello 5i,
This is not a question, merely a comment from my perspective. I hold VET in two separate account and it is held for dividend income as opposed to looking for any significant capital gains.
On paper, my "losses" are substantial. However, in reality, unlike others who have sold, I have actually lost absolutely nothing - and I fully expect that by keeping this holding for the dividend (cut or not), should the time arrive when I do choose to sell, it will likely be because I am back in the black on it and will realize a gain. Meanwhile the dividend helps keep me "in the lifestyle to which I have become accustomed".
While it could happen that VET will go to Zero, be de-listed and cease to exist as a viable company, I am betting against it.
In a sector decline such as we are seeing in the Canadian energy space, I am not sure selling out at a significant loss is necessarily the only solution unless one can really benefit from the tax benefit on the loss - and in the case of VET, they have a great deal of exposure outside of Canada as well.
Anyway, I am happy to hold, collect the dividend and wait until the tide turns, which I am convinced it will do over some unknown period of time.
Just my perspective, nothing more.....
Cheers,
Mike
Read Answer Asked by Mike on July 26, 2019
Q: Good morning...I am a 68 year old retail investor that has all of my expenses covered with dividend paying stocks....in my rif I hold nfi and toy both down about the same...I am thinking of selling and trading the two of them for arx and mx as these sectors are down and also these two stocks have large dividends.. would you change them now or hold the original two...also I hold vet in the energy sector and although down like the dividend
Read Answer Asked by gene on July 26, 2019
Q: In 5i's opinion are the dividends on these 5 stocks sustainable and if so which 3 would 5i recommend to buy for income at the current prices.
Thank you.
Read Answer Asked by George on July 25, 2019
Q: What's your thoughts on vermillion at this time? What is dividend payout percentage of cash flow or what ever metric you judge it by and is it safe. I know they picked up some canadian assets which the market doesn't like but what is its cash flow break down both canadian and international? Looking to pick up some quality name that are beat up.
Read Answer Asked by Todd on July 23, 2019
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