Investment Q&A

Q: What would be your top 3 picks in the TSE in the energy sector right now?

Q: What percentage of one's portfolio do you recommend to put into cyclical stocks, for someone with moderately high risk tolerance and 30+ years to invest? Why?

Q: For a conservative investor making an initial investment in o&g industry ( other than owning ENB ), which would you suggest ?

I like the integrated biz and very long reserves of SU and the proven management and size of CNQ.

Which company can handle lower oil prices best ? Which is more dividend growth friendly ?

I’m thinking either one is fine and it’s a coin toss, but any further considerations you can provide would be appreciated.

Thanks, Derek.

Q: Do you think Su could take out Cve in this market?

Q: Currently I have an overweight position in energy, with full positions in CNQ, SU, TOU, ENB and half positions in TRP and WCP. Does it make sense to sell TRP at this time and take a full position in PPL? Does it make sense to hold both CNQ and SU or is there a significant correlation between the two, if so, which would you keep?

Q: Hello,

From all the companies in any of the 5i portfolios, would you be able to list which have been buying back shares or have had high insider buying within the last 6 months?

Thank you.

Q: I currently own ENB (full position), SU and WMB in my RRIF. I am thinking I would like to increase my dividend income to help meet my annual withdrawal. I am trying to decide whether to sell WMB and buy more SU (more dividend income); sell WMB and replace it with CNQ (dividend bump and retain diversification) or stay the course and sell some shares if needed. I would appreciate your opinion which could include an option I have not considered.

On a different note, we had the misfortune of having our home broken into in Toronto. During the course of the investigation the officer suggested we download the images captured by our door alarm using their Axon app. I took the opportunity to ask the officer about Axon which I own (get a little intel to turn my lemon experience into lemonade maybe!). He said the officers love the software and they were looking forward to getting the upgraded Taser within the next few months. So it was nice to get that positive news.

Appreciate your insight.

Paul F.

Q: Sell or not, and proxy for sales in your opinion.
AC, TECK.B, CS, SES, STLA, ARE, CVE.
XBI-N, HD-N, NIKE-N,

Q: I need to liquidate a portion of a portfolio holding the 8 stocks listed. Can you please rank them in the order you would sell (first to last) based on potential for total return over the next 3-4 years?

Q: These seem to be your favourites in the O&G sector. Which would you buy at this point?

If they not your top two, please add your recommended company or ETF.

Thanks!

Q: Planning on setting up an income portfolio of dividend growing equities. Would the above stocks meet this objective. Already own BAM, BNS, CNQ, DIR.UN, ENB, FRU, FTS, IFC, PEY, POW, SLFm TRP and WCP. Are there other equities other than the above list that you would recommend substituting for one or more of them? Thanks for your thoughts.

Q: Dear Peter et al:

A "Drill down" from the top type of a question!

In Energy sector, these three things seem to be important.
a. Pay down debt.
b. Keep paying healthy dividend or even increase it.
c. Buy back shares.

Recently Cole Smead came on a podcast and clearly laid out his case for his preference to invest in companies that buy back shares. (In the Money by Amber Kanwar, erstwhile BNN Bloomberg Marketcall host).

What is your take on this? What are the 3 companies in the Energy sector that you like using Share buy backs as the metric?

Thanks in advacnce.

P.S. Hope we see you Peter on Amber Kanwar's In the Money podcast. It seems to be getting some traction now.

Q: Hi,

If the war in Ukraine ends, how would it affect oil prices, specifically, SUN, CNQ, ENB, CVX?

Q: What do you think the odds are of Canada throwing in their trump card in the tariff wars and adding a 10% export tax on the 4 mbpd of oil sent to the states (~20% of their entire consumption)? This would likely spike the world price a lot and not reduce Canadian exports at least in the short term. Would this be a huge "win" for Suncor and other Candian oil stocks?

Q: How would you rank for purchase of ALA, BEPC, EFX, EIF, EQB, MFC, NA, NPI, NTR, PSI, SOBI, SOB, SU, WSP for a income focused portfolio?

Q: Can you please describe how you approach "swaps" in a portfolio? By that I mean swapping out one company for a very similar company in the same industry. You did this somewhat recently in removing Sun Life from the BE portfolio for Intact. (In that case I recall it was due to a better growth profile.)

My general sense is you have liked CNQ better than SU for a while now, for example. And TD better than BNS. Feel free to correct if this is not how you see it.

Appreciate there is a benefit to a certain amount of stability in the portfolio, so you won't bouncing stocks out every time the wind changes. But I'd interested in your thoughts on how you think of this aspect of portfolio construction. For example, in what circumstances might precipitate a swap in these or other cases? When would you hold still even if you like an alternative stock slightly better?

Thanks very much.

Q: I hold these large Canadian Companies.. I realize there will be continued volatility in the market but given that these companies have pulled back, some significantly, what order would you buy these names? Are there any you would not buy?

Please deduct appropriately…

Thank you
Tim

Q: How does 5i feel about the Canadian energy sector, specifically SU, MEG, CNQ, ENB? Is the recent pullback an opportunity to add to an existing position or hold for time being?

How's the outlook for the sector in the next 5 years?

Q: Hi 5I Team,

What are your thoughts at this time on International Petroleum? With its sustained share buyback program the outstanding float is being constantly reduced. Would this factor make it a compelling investment?

Thanks

Q: What CAD oil companies produce mostly light vs heavy oil.