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Suncor Energy Inc. (SU $61.01)
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Imperial Oil Limited (IMO $126.51)
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Canadian Natural Resources Limited (CNQ $45.44)
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iShares S&P/TSX Capped Energy Index ETF (XEG $19.54)
Q: Hi 5i,
I've noticed a massive divergence in the price of oil and oil companies. Can I please have your analysis of this, and what are your favorite stocks in this sector for a long term position. I'm also looking for shareholder friendly, low debt play.
Thx.
I've noticed a massive divergence in the price of oil and oil companies. Can I please have your analysis of this, and what are your favorite stocks in this sector for a long term position. I'm also looking for shareholder friendly, low debt play.
Thx.
5i Research Answer:
Valuations are all over the map, based on size (small caps tend to get discounted), growth (varies, of course), managment, debt levels, cash flows, areas of operation (international is seen as more risky), reserve life of assets, decline rates, dividends, and a host of other factors. We would look to: CNQ, SU, TOU, WCP, TVE, PEY as amongst our favourities in the sector.