Investment Q&A

Q: Hello, how high is the risk of VET going bankrupt? Is VET could become a takeover target? Is another dividend cut possible? If it goes bankrupt, do we automatically loose all the money we still have in the company's stocks? Thanks, Gervais

Q: Hello Peter and Co,
My 20 year old grandson has opened a TFSA with $22000 in cash, and is asking for advice how to start investing. Our suggestion is that he put a fairly large amount into an index fund ETF, such as VFV, and then buy several individual stocks with the rest. They would be small positions (~$2500 per stock) but a good way for him to start learning, and with markets down, the timing seems quite fortuitous.
He is considering the following:
100 shares VFV: ~$7500
40 shares GSY: ~$2500
35 shares BEP.UN: ~$2500
1 share AMZN: ~$2500 (CAD)
7 shares NVDA: ~$2500 (CAD)
200 shares VET: ~$2500
-------------------------------
TOTAL: ~$20000

We had also suggested CSU, SHOP, KXS, PKI, TTD, GOOG, AAPL, ROKU, FB

What do you think of the above approach, and what changes might you suggest? I realize VET stands out as quite risky, but should probably do well long term.
Are there any sectors or stocks or ETF that you would suggest adding/replacing? Obviously he has a multi-decade time horizon.
Thanks for your sage advice!

Q: Hi team,

My first time real bloodbath experience. Just wanted to ask if you change your comment about not taking an aggressive stance on VET after this past weekend. Can the company survive with say $30 oil prices for the next 6 months, given the fact their debt to cash flow situation is going to get much worse. Would you buy today or would you expect the price to go even lower?

Thanks for being with us during such exciting times! :)

Q: I never thought I'd see VET at $10.00 Is this a great buy or just a disaster - moreso than it is already waiting to happen?
Is this company sustainable at this number? With anyone but Trudeau at the helm I'd think theres a chance...but with him I fear its all downhill.
Your opinion....does this company survive??

Q: Can we get your thoughts on Vet results and dividend reduction? Thanks John

Q: Vermillion (VET) is getting hammered this week and again today after an analyst said they will have to cut their dividend by 50%. The company says no way. I am wondering if this is so terrible for the company. They would still be paying over 8% and have more money to repay debt. The price seems too low and I think it will rebound strongly when the panic passes. What do you think?
Thanks.

Q: I am continuing to hold VET in my long-term portfolio. I bought it originally at 18.27 and am enjoying a 13% yield. I am not overweight in energy. With the recent declines, it is tempting to buy more. What are your thoughts on VET these days? Do you feel confident in their ongoing ability to pay (and potentially grow) the dividend? Thanks in advance.

Q: Peter & Co.,
I am reviewing Vermilion’s operation, financials and dividend in light of the Coronavirus. The virus is still largely an unknown factor in world health and economics. However, the impact on travel and commerce is certainly being felt. Among my concerns is the short/long term impact on energy consumption. Vermilion has 60% of its production in North America and 35% in Europe. Is there any way to evaluate what impact we can might expect on VET over the longer term?
With appreciation, Ed

Q: Good morning team i wanted to hear your opinion on the recent downgrade Thanks

Q: Do you think that Vermillion's dividend is safe if oil and gas prices hold steady, or fall by a small amount? Approximately how much do you think that oil or gas would need to fall in price for VET to need to need to cut its dividend?

Thanks,
Ishay Friedman

Q: I hold the following in my balanced equity type portfolio and they all represent less than a half position, either because they have dropped or because they have not kept up with the rest of the portfolio. I have enough new money to top up 4 or 5 of them to their original weightings. Which would you top up at this point and which would you simply let go?

Q: Looking to add some gold /oil and wondered whether OR or maybe ZJG would be better.Also VET ?Open to any suggestions.Thanks Paul

Q: Hi Team!

I'd like to add some names in the energy space given its beat up status. Can you provide 3 names that would provide a proxy on a recovery in this area?

Q: My question is on energy as I do not hold anything in this space. I have been looking at this company for awhile producing a high yield that the company says it will not cut. From what I understand this is holding the stock price as fears of a dividend cut. yet on the other side it is said if the dividend was cut it would probably help the stock price. My question if the stock is purchased you get the dividend and if the dividend is cut the stock price would most probably increase. any comments on this thesis.

thanks Dave

Q: How do you view the above companies to boost yield, energy weighting and opportunity for capital gain. My objective is to minimize total equity exposure while achieving a targeted yield by seeking out more potent dividend names with good upside potential. Thanks.

Q: Hi ,

I am looking at adding VET for Dividend and Growth. How is their balance sheet ? Do you expect any pull back or good entry point ?

Do you think the dividend is safe here ?

I do have SU.to, WCP.to stocks.

Thanks,

Q: What is the mix of oil vs. gas revenues for Vermilion? Are there substantial revenues generated outside of oil & gas? Thanks.

Q: I'm looking to add a little oil given the current upward momentum. I own ERF at this time. Could you recommend a couple of mid cap names that might respond with some gusto to further oil price increases....willing to assume some risk.

Thanks, Dennis

Q: Hello, I'm looking to sell Vermilion for tax loss purposes and am looking to maintain similar sector exposure by replacing it with Whitecap. Do you think this a reasonable move or is there a name you would prefer over Whitecap in this scenario? Or would it be better to simply wait the 30 days and repurchase Vermilion? Thanks and Happy Holidays!

Q: I was listening to some comments on VET on BNN Fri. What was mentioned was instability in the European gas market. I believe something about Russia messing around with the market and therefore putting on question on Vet's gas business in Europe. Do you have any insight into this?

TIA