Topic: How To Invest

Dear Pat: I believe that oil prices will rise over the next few weeks. What oil stocks to you recommend? I await your reply.

Article Excerpt

We currently recommend a number of oil stocks. Our favourite integrated-oil companies (or companies that produce and refine oil, as well as operate gas stations) include Imperial Oil, $41.34, symbol IMO on Toronto (Shares outstanding: 847.6 million; Market cap: $35.0 billion), and Suncor, $38.63, symbol SU on Toronto (Shares outstanding: 1.6 billion; Market cap: $60.2 billion). We also recommend Crescent Point Energy Corp., $37.20, symbol CPG on Toronto (Shares outstanding: 166.0 million; Market cap: $6.2 billion), as an oil-weighted producer. Note that we advise against excessive exposure to the resource sector, which includes oils. The price of oil is highly volatile. So it’s a bad idea to base investment decisions on predictions of future prices, because these predictions are simply not reliable. However, you can profit nicely over long periods by investing a reasonable portion of your portfolio in well-established or well-managed companies that are active in businesses that involve highly volatile commodities like oil. ..