Q: Your opinion on vqs? My son wants to purchase the stock. Is now the time to invest in natural gas and oil positions? Your top three picks for oil and natural gas would be appreciated.
5i Research Answer:
With a tiny market cap of only $15M, and a stock down 69% in a year, we would consider it too small and speculative for serious consideration. Revenue is growing, but losses continue and it is going to need more capital at some point. With the energy sector, we think some representation makes sense. We would not want as high a weighting as the TSX. 7.5% would be enough for us. Profits and cash flow are set to decline, but this is largely offset by very low valuations. We would suggest SU, WCP, TOU