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  5. KEL: What are your top 3-5 of picks in small/mid cap Canadian O&G stocks? [Kelt Exploration Ltd.]
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Investment Q&A

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Q: What are your top 3-5 of picks in small/mid cap Canadian O&G stocks? I'd also appreciate your thoughts on holding periods.

(Eric Nuttal seems to think they will do well for quite a while yet, though he seems to always be bullish - or maybe just talks his book...)

Asked by Dave on August 16, 2022
5i Research Answer:

We would side with TVE, KEL, PXT, WCP and would have a holding period of at least 3-5 years, unless one is trading a trend. The oil and gas sector is highly cyclical and correlated to energy prices. There is also considerable global political risks associated with the sector. If one is not trying to take short-term profits, one needs to have a long-term time horizon and invest based on fundamentals. We think this is especially the case now as oil and gas prices have been falling and it is not yet clear where they will land in the near term.