Energy Stocks
Resource and commodity stocks in general should make up only a limited portion of your portfolio—say less than 20% for a conservative investor or as much as 30% for an aggressive investor. And as part of that segment, energy stocks could make up, say half of that total. The rest could be fertilizer stocks, mining stocks and so on.
Oil and gas stocks have been below-average performers lately, and many investors are tempted to get out of the industry altogether. However, the energy sector can play a crucial role in your portfolio as a hedge against inflation. The low inflation rates of the past couple of decades deserve some of the blame for the poor performance of the sector. However, energy stocks will likely rebound in years to come as the global economy recovers.
- Invest mainly in well-established companies;
- Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
- Downplay or avoid stocks in the broker/media limelight.
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Energy Stocks Library Archives
CENOVUS ENERGY, $11.06, remains a buy for patient investors. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $21.6 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.6%; www.cenovus.com) has completed its acquisition of rival oil producer Husky Energy.
To help pay down the extra debt it assumed as part of the Husky deal, Cenovus is selling some of its less-important assets.
Those include a deal to sell the royalty rights to its Marten Hills oil assets in Alberta to Topaz Energy for $100 million....
To help pay down the extra debt it assumed as part of the Husky deal, Cenovus is selling some of its less-important assets.
Those include a deal to sell the royalty rights to its Marten Hills oil assets in Alberta to Topaz Energy for $100 million....
Oil and gas stocks have moved up lately as the U.S. and other economies recover. We continue to 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 that have positive cash flow even at low energy prices....
Prices for commodities such as crude oil and copper have jumped as the global economy rebounds from last year’s pandemic lockdowns. We feel one of the best way for investors to gain exposure to the Resources sector, and earn steady income, is with global giants Chevron and BHP.
CHEVRON CORP....
CHEVRON CORP....
We continue to recommend conservative investors limit their oil holdings to integrated producers such as these three. Their upstream (or producing) businesses benefit from higher crude prices. Their downstream (refining) businesses, on the other hand, convert crude into gasoline and other fuels and so profit when oil prices fall....
CENOVUS ENERGY, $9.59, remains a buy for long-term gains. The company (Toronto symbol CVE; Shares outstanding: 2.0 billion; Market cap: $19.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 0.7%.; www.cenovus.com) completed its acquisition of rival oil producer Husky Energy in January 2021.
The combined firm is now Canada’s third-largest producer of oil and natural gas, with output of about 750,000 barrels of oil equivalent per day....
The combined firm is now Canada’s third-largest producer of oil and natural gas, with output of about 750,000 barrels of oil equivalent per day....
ENERPLUS CORP., $7.14, is a buy for aggressive investors. The company (Toronto symbol ERF; Shares outstanding: 256.8 million; Market cap: $1.8 billion; TSINetwork Rating: Speculative; Dividend yield: 1.7%) has just closed its acquisition of Williston Basin assets....
With COVID-19, both Domino’s and Chipotle dropped along with the market. But each has used a savvy strategy to rebound and climb to new highs. We think both companies are well-positioned to capitalize on their popular food offerings to keep attracting more dine-in, pick-up and takeout customers....
Weight Watchers rebranded itself as WW in the fall of 2018, when it expanded its weight-loss services to include “Wellness that works” programs. The move reflects the company’s goal of promoting healthy living, in general, rather than just weight loss.
More important, it also focused on expanding its digital offerings....
BIRCHCLIFF ENERGY, $3.00, is a buy. The company (Toronto symbol BIR; TSINetwork Rating: Speculative) (www.birchcliffenergy.com; Shares outstanding: 266.0 million; Market cap: $776.8 million; Dividend yield: 0.7%) explores for and produces oil and gas....
OVINTIV INC., $30.88, is a buy. The energy producer (Toronto symbol OVV; Shares outstanding: 261.0 million; Market cap: $8.1 billion; TSINetwork Rating: Average; Dividend yield: 1.5%) has now yielded to pressure from activist investor Kimmeridge Energy Management Co., which owns about 2.5% of Ovintiv’s shares....