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  • Launching The Buy The Sector Dips Portfolio: The Energy Sector Dip [View article]
    Matthew, thanks, that's a good question. It's a matter of diversification for me. I hold some Canadian Energy companies, too, but CVX, XOM, KMI, and SLB are bigger leaders.
    Dec 10, 2014. 06:03 PM | Likes Like |Link to Comment
  • Launching The Buy The Sector Dips Portfolio: The Energy Sector Dip [View article]
    dc10, thanks. I submitted a change request for that.
    Dec 9, 2014. 11:35 PM | Likes Like |Link to Comment
  • The Crash Of Oil Prices Could Be The Opportunity Of The Decade, Part 2 [View article]
    RS, nice & easy read. Always like your simple and concise articles. Enjoying the entertainment from the comments as well.

    Keep 'em coming,
    Canadian
    Nov 30, 2014. 01:19 AM | 1 Like Like |Link to Comment
  • A Gem In The Energy Industry: Buying Vermilion Energy For Growth And Income [View article]
    Praveen, that's a fair comment. We do not not how low the oil prices with drop and how long they'll stay low for before coming up again.
    Nov 18, 2014. 02:10 AM | Likes Like |Link to Comment
  • A Gem In The Energy Industry: Buying Vermilion Energy For Growth And Income [View article]
    Hi Praveen, thank you for raising a good question. Issuing new shares is one way for companies to raise cash. Looks like it's a common practice in the industry; I compared the VET's number of outstanding shares to its peers, and here's what I found. Between 2004 and 2014,
    - VET increased shares by 61%
    - BNP increased shares by 144%
    - BTE by 112%
    - ERF by 109%

    I compared VET and its peers on their Return on Invested Capital (TTM):
    - VET: 12.5%
    - BTE: 9.3%
    - BNP: 4%
    - ERF: 6%

    So, VET again beats its peers by diluting less and having a higher return on invested capital.

    "The company is paying our more dividend than the free cash it is generating. Now with price of oil dropping the company will have to either cut its dividend or take on more debt to pay for dividend and/or growth." -- In 2009 and 2010, the free cash flow was also negative, but VET kept its distribution/dividend going.

    "Like Charlie Munger says, you don't know who is swimming naked till the tide runs out. With the price of crude falling many of these companies like VET will turn from gems into lumps of coal." -- It's true that no one knows how low oil price will drop. Slowing building a position by dollar-cost averaging in on pullbacks help.

    Best,
    CDGI
    Nov 17, 2014. 03:38 AM | Likes Like |Link to Comment
  • A Gem In The Energy Industry: Buying Vermilion Energy For Growth And Income [View article]
    Tx, the Hedging Summary was last updated Oct 17, 2014. At a later date, I assume Vermilion will update that to reflect new changes.
    Nov 14, 2014. 09:11 PM | Likes Like |Link to Comment
  • A Gem In The Energy Industry: Buying Vermilion Energy For Growth And Income [View article]
    Bizzt, thanks for your comment and the follow.

    Cheers,
    Canadian
    Nov 13, 2014. 01:37 PM | Likes Like |Link to Comment
  • A Gem In The Energy Industry: Buying Vermilion Energy For Growth And Income [View article]
    You're welcome, Pim.
    Nov 13, 2014. 12:26 AM | Likes Like |Link to Comment
  • A Gem In The Energy Industry: Buying Vermilion Energy For Growth And Income [View article]
    Graeme, I'm glad you found this article useful. Good to see another fellow Canadian here and thanks for the follow!
    Nov 11, 2014. 04:01 PM | 1 Like Like |Link to Comment
  • A Gem In The Energy Industry: Buying Vermilion Energy For Growth And Income [View article]
    BoomBoom, thanks for running the numbers and the verification. I appreciate it.
    Nov 11, 2014. 03:59 PM | 1 Like Like |Link to Comment
  • A Gem In The Energy Industry: Buying Vermilion Energy For Growth And Income [View article]
    Goldenretiree, thanks for your question. Part of the reason to that lower rating is probably because VET is a mid cap company and not a large cap.

    and I agree with Michael.
    Nov 11, 2014. 02:35 PM | Likes Like |Link to Comment
  • A Gem In The Energy Industry: Buying Vermilion Energy For Growth And Income [View article]
    Mountainguy, that's a good question, but which I don't have the answer to. FAST Graphs and Scotia Bank's report don't show that information. I'm not too worried about that though because I believe the oil and natural gas prices are volatile. When they go down and the oil and gas companies' prices go down with them, it's time to pick up the best ones on your watch list. That's my way of thinking anyway..
    Nov 11, 2014. 02:33 PM | Likes Like |Link to Comment
  • A Gem In The Energy Industry: Buying Vermilion Energy For Growth And Income [View article]
    Pim,

    I'm basing this statement: "$10,000 invested in Vermilion 10 years ago would be worth about $75,000 today" on the Morningstar total return chart in the lower end of the article which includes price performance and dividends. ($75,000 - $10,000)/$10,000 = 6.5x

    Google Finance shows when VET paid a dividend. I should be more specific to say that Vermilion was an income trust before and paid distributions from 2003 to August 2010, after which it converted to a corporate structure and paid dividends. (See Vermilion's history from 2003 to present: http://bit.ly/1sxVfIF)

    Thanks for allowing me to clarify,
    Canadian
    Nov 11, 2014. 02:18 PM | Likes Like |Link to Comment
  • A Gem In The Energy Industry: Buying Vermilion Energy For Growth And Income [View article]
    Wilco, Vermilion should give a nice, steady price appreciation while giving us a 4% yield to wait. Now, we just need that oil price to go up...

    Best,
    Canadian
    Nov 11, 2014. 02:05 PM | 1 Like Like |Link to Comment
  • A Gem In The Energy Industry: Buying Vermilion Energy For Growth And Income [View article]
    Atlasman, there's always the battle between supply and demand. Eventually, the cycle will turn again, and there won't be enough supply.
    Nov 11, 2014. 02:04 PM | Likes Like |Link to Comment
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