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Enbridge Inc. (ENB $75.43)
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Canadian Natural Resources Limited (CNQ $64.12)
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Whitecap Resources Inc. (WCP $14.61)
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Suncor Energy Inc. (SU $64.54)
Q: I currently have substantial unrealized gains in Suncor, Whitecap, Enbridge, and Canadian Natural Resources. Based on my overall portfolio and current market conditions, would you recommend reducing these positions, selling a portion, or continuing to hold them? I would appreciate your professional view.
Thanks Rick
Thanks Rick
5i Research Answer:
We think holding momentum, especially names that hit new highs, could make sense. Though oil and gas prices can be significantly volatile, which affects these companies’ earnings and share prices in the near term. With that said, with oil prices even in the range of $80–$90, these companies are expected to generate record profit and cash flow. We would be holding here, but rebalancing and taking some profits makes sense if the weightings have seen an increase over the last few months. In general, we would not try to time the sector, but rather manage overall sector exposure.