OPEC's restraint bodes well for energy stocks
The Canadian Press, September 24
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With Canada's winter soon setting in, and furnaces ready to keep out the bitter cold, stocks in those industries could soon experience a boom. And sometimes the weather makes investors impulsive about those stocks.
"What you find is that when you do get a really cold day in the winter everyone will start buying these stocks, which is usually the best time to sell them," said Craig Porter, portfolio manager of the Altamira Resource Fund.
In the last few weeks, oil and gas stocks have dropped slightly as investors locked in profits and others wondered what OPEC would do.
"It's still a good time to buy these stocks," Porter said. "There's some bargains out there now."
Most companies see $19 to $20 US per barrel as the range for the average oil price in the next year, he said, and its production is profitable at that level.
"There's still room to go on these stocks and we're still positive on the sector," he said, noting stocks aren't reflecting the higher oil price yet.
Porter also sees a gradual rise in the natural gas price over the next few months. North American demand for gas has risen as more people use it to run heaters and air conditioners, he said.
"Everything looks good on the natural gas front going into this winter," Porter said.
Full article: southam.com |
