oil prices

The best way to cut your risk when investing in oil and gas stocks is to focus on companies with long-lasting reserves. We also look for producers with low operating costs. That helps them stay profitable when oil prices decline.


We analyze three companies below: Encana and Cenovus offer strong long-term prospects; and while Pengrowth’s focus on its new oil sands project is a plus, its high debt load is a major risk factor.


ENCANA CORP....

Oil prices have moved up 5% since the U.S. imposed new sanctions on Venezuela’s oil exports. OPEC’s recent production cuts have also contributed to the increase.


However, crude prices will likely remain volatile over the next few years. We feel the best way for conservative investors to cut their oil risk is with integrated producers like Chevron....



JP MORGAN BETABUILDERS JAPAN ETF LISTEN:




The Japanese economy ranks among the top 5 in the world and hosts some of the most profitable global corporations....
SUNCOR ENERGY INC. $44 (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.6 billion; Market cap: $70.4 billion; Price-to-sales ratio: 1.8; Dividend yield: 3.8%; TSINetwork Rating: Average; www.suncor.com) is Canada’s largest integrated oil company, with major projects in the Alberta oil sands....
The Japanese economy ranks among the top 5 in the world and hosts some of the most profitable global corporations. The economy is, however, hamstrung by a declining and rapidly aging population. Still, an older population also present opportunities, and Japanese companies are already coming up with innovative and technology-driven aids.


Here is one ETF that provides exposure to the top Japanese public companies.


JP MORGAN BETABUILDERS JAPAN ETF $22.40 (New York symbol BBJP; TSINetwork ETF Rating: Aggressive; Market cap: $3.9 billion) tracks the performance of the largest publicly listed Japanese companies.


Industrial companies account for 19.6% of the fund’s assets, while Consumer Cyclical (17.6%), Technology (13.9%), Financial Services (11.6%), Consumer Defensive (8.6%) and Health care (8.2%) are other key segments.


The ETF holds a large portfolio of 383 stocks; the top 10 make up only 18.0% of overall assets....

PEYTO EXPLORATION & DEVELOPMENT CORP. $7.05 (Toronto symbol PEY; Shares outstanding: 164.6 million; Market cap: $1.2 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.4%; www.peyto.com) produces and explores for natural gas and oil in Alberta....

ISHARES MSCI JAPAN INDEX FUND $54.18 (New York symbol EWJ; buy or sell through brokers; us.ishares.com) is an ETF that aims to match the return of the Morgan Stanley Capital International (MSCI) Japan Index.


The fund’s top holdings include Toyota, 4.3%; Mitsubishi UFJ Financial, 1.9%; Sony Corp., 1.9%; Softbank, 1.9%; Takeda Pharmaceutical, 1.9%; Sumitomo Mitsui Financial, 1.5%; Keyence Corp....
A: Bonterra Energy, $6.75, symbol BNE on Toronto (Shares outstanding: 33.1 million; Market cap: $223.4 million; www.bonterraenergy.ca), produces oil and gas in Alberta, Saskatchewan and northeast B.C., with a focus on the Pembina Cardium area of central Alberta....



Russia LISTEN:




Declining commodity prices and international sanctions have hurt the Russian economy....
SHAWCOR LTD. $18 (www.shawcor.com) is a leading producer of sealants and coatings to keep oil and gas pipelines from rusting. It also makes electrical wire and other industrial products. The stock is down 30% in the past six months, which reflects investors fear that lower crude oil prices could hurt the construction of new pipelines and impact ShawCor’s revenue....