Here’s two producers for aggressive investors

Article Excerpt

If you’re tempted to add beaten-down oil and gas stocks to your portfolio, you’re facing a dilemna. Many continue to report positive cash flow and trade at extremely low multiples to cash flow. Some even pay regular dividends. But at the same time, investors are very concerned about the prospect of weakening oil and gas demand in a slowing global economy. Combined with strong supply from shale production, it’s likely to make you wary. Still, we do recommend that most investors maintain some exposure to the oil and gas industry—as part of a balanced portfolio. But to cut risk, you should stick with producers with positive cash flow even at low energy prices. Here are two that fit that bill for aggressive investors: PEYTO EXPLORATION & DEVELOPMENT, $3.80, is a buy for aggressive investors. This gas-weighted producer (Toronto symbol PEY; Shares o/s: 164.6 million; Market cap: $626.5 million; TSINetwork Rating: Extra Risk; Dividend yield: 6.3%; www.peyto.com) produces gas and oil in Alberta. Its production is…

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