Q: HI team: re CNQ
with the recent pull back , is it due to the whole energy sector as a whole?
what would be a decent entry price to add to my 1/2 position already owned?
thanks
Michael
with the recent pull back , is it due to the whole energy sector as a whole?
what would be a decent entry price to add to my 1/2 position already owned?
thanks
Michael
5i Research Answer:
The recent pullback has been largely due to the pressure in energy prices. The company itself has not had any materially negative news. Energy prices can be volatile, but we think fundamentally CNQ is still a great operator with disciplined capital allocation. CNQ is trading at 10.3x Forward P/E, and generating healthy cash flow, which is being paid out as special dividends and buybacks. We would be okay adding some here.