Investment Q&A

Q: Hi everyone,

What oil company would you choose to take advantage of possible higher oil prices in the near future (in case of confrontation with Iran) while avoiding possible border tax proposals against Canadian oil? Would you choose smaller Canadian or US large cap? Which one do you think would be a safer bet SPE or SGY? Or would you recommend something with even better MANAGEMENT like VET with operations outside Canada? Or do you prefer a US company with better growth?

Thank you in advance for your promptness and insights.

Q: Hello 5i.
Pushed send on this question Jan 30. Resending.

Hello 5i
I have a couple oil investments(PSK/CPG) and have been using pipelines for Energy sector exposure.

As I have been watching the chatter on 5i about energy growth stocks and with today's pull back, I have been looking to enter positions of producers....possible VII(significant asset in the ground), TOU(after purchase from Shell), RRX(a 5i focus stock).

Would you please comment on preference from above or other from universe - related to search for growth from today's price , political situation and oil/gas price environment?

Peters and Co indicate expectation for $40 oil price going into summer. How would you balance this information in purchases today?

Thanks
Dave

Q: Within my energy holdings, I have full positions in SU, CNQ, and IMO. I would like to sell one of these 3 and add to my existing VET holdings (I also have full positions in WCP and TOU). Taking into account my desire to have a good balance between oil and gas production, and optimal future capital gains prospects, which of the 3 (SU, CNQ, IMO) would you sell? Also, please provide the percentage of revenue for each of the 6 companies mentioned, that is derived from Canada's oil sands...thx..Glenn

Q: Last year I believed that oil reached too far of a low and would rebound and luckily I was rewarded. My allocation into this was a measured risk with BTE, MEG and BXE. This year, while I think we will see higher prices, I do not believe the growth will be as great, perhaps hitting $60-65 by the end of the year as an optimist.

I am seeking to follow a similar pattern (1 pure gas play, 2 oil companies). I am not overly concerned with dividends nor risk (I don't believe a large plummet to $40 WTI is going to occur either). What I am concerned about is owning companies that are spending capex to drill and take advantage of these increased prices.

VII vs PEY is what I have narrowed things down to for nat gas, just curious where you see them going forward especially related to capacity increases. TOU is too much of a 'safe play' for this account.

Furthermore, are VET and WCP (intl and North American) some of the best in breed, or am I overlooking some other gems? CPG, as an example, doesn't make my cut because of their focus on maintaining rather than expanding. BTE and MEG will be okay but I think they're too focused on survival and debt rather than expanding. This is for my TFSA only so I am focused on growth.

Q: Two Questions:

1. I am overweight in these 3 pipeline/utilties due to run of share prices, ala,ipl and ppl should I trimm back all 3 or sell one, if you were to sell one which would it be?

2, With the recent sell off in energy stocks Vermillion is holding up better than most especially compared to similar companies such as Esso and Exxon, is this another sign of what a good core position Vermillion is or should we expect Vermillion to decline?

Thanks again for the great valuable source 5i provides.

Q: The above lists my oil and gas investments. In addition I have drilling, service companies, and pipelines also associated with oil and gas. I feel that I have too many companies to easily follow and would like some recommendations. Based on your current thoughts can you recommend which I should sell and which I should buy more of and why. Also if there is company that I have not listed which you think is a better fit please consider including that in your recommendations. Based on my history, I usually keep an investment for a minimum of 5 years and some of the above I have had for at least 15 years. Also, if you believe that later in the year may be a better time to consider the trades I am contemplating will you please mention that as well. Thank you very much. I highly value your opinion.

Q: Hi Peter and Team, I know that Peyto is one of your top choice in the energy sector. How do you explain that Peyto stock has decreased by about 12% over the last 6 months? Vermilion has increased by about 40% during the exact same period. Am I missing something here? Thank you, Gervais

Q: I want to add a bit to my energy allocation and am debating between Vermilion and Superior plus. Any suggestions? My only holding at the moment is PKI

Q: Hi 5I, I would appreciate your opinion of eit.un and rbn.un, is the div safe, would you recommend buying. Also, which of the oil stocks above would you recommend buying, perhaps you can suggest a better one with paying dividend. Many thanks, J.A.P. Burlington

Q: Your Thoughts on VET , PEY , TOU.
How would you order in terms of growth potential for the next 2 years .
Thank you.
P.

Q: HI TEAM
Bought 2000 bte @ 4.00 i think id like to sell and replace it with one or two other cos. with better prospects. my other oil holding 3% are wcp
hwo . i been whatcing rrx but it doesnt move a little help please
thxs. and MC
bob

Q: How do you feel about VET?

Q: Please rank these three energy stocks in order of preference. Thanks, Barrie

Q: Hi Can I have your thoughts on VET q3 results?
Stan

Q: My longest holding (20 yrs) is FRU which I have sold down over the good years, but still held some through lots of up and downs. I have held VET but eventually sold after its big run up in 2014. I am thinking of switching my remaining (and only O&G stock) FRU for VET. I invest for income, preferably with some growth prospect. However, I believe there is a possibility of CN (I think) taking FRU private and would be disappointed to miss out on the usual take over premium. Your thought would be appreciated.

Q: Hey 5i team, this is my first question here. I have recently finished school, and have opened a TFSA. I am looking to start a portfolio, and am willing to hold investments for up to five years. I was looking into the energy sector, and like CPG, and CVE (for growth potential), and VET (for their dividend). Would you recommend one over the other (or anything else), or would you recommend averaging between the three?
Thanks,
Mark

Q: I have a 3.5% position in CPG, and I have a 1% position in TOU and a 2.5% position in VET. My overall exposure to energy is around 12%. I am not looking to decrease my energy exposure, but I am considering consolidating my position into fewer names. Would you consider a transition from CPG to either TOU or VET to be a sound move, and if so, which would you choose? VET offers a better dividend, but TOU is better positioned to take advantage of a rise in natural gas, which seems like a real possibility over the next 3-6 months. Thanks so much!

Q: Your thoughts on Enerplus would be appreciated.
Thanks so much.

Q: Hi today's results looked very encouraging .do you agree
Kind regards
Stan

Q: Hello Peter,
Mr. Seymour Schulich, continues to increase his holdings in Birchcliff Energy. Do you see this as a good sign to enter the name? It has risen quite a bit so am a bit reluctant. Do you still like Gold standard ventures and lastly would you consider Vermilion energy as a conservative play on energy? My concern is that it dropped quite a bit from a few years ago and is recovering very slowly. At the current rate, can you see the stock doubling in atleast 5 years. Thanks