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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (7897)	3/15/2002 9:02:40 AM
From: Tomas	Read Replies (3) \| Respond to of 206209

Bullish on oil stocks The Globe & Mail, Friday, March 15 – Print Edition Tip Sheet, by CAROLINE ALPHONSO Canadian energy stocks are outperforming the broader market, up 11.3 per cent so far this year, compared with 1.8 per cent for the Toronto Stock Exchange 300-composite index. "We continue to be overweight [in] the sector -- value looks compelling . . . and the sector fits into our strategy theme of a cyclical group levered to the inventory cycle," David Rosenberg, chief economist at Merrill Lynch Canada Inc., wrote in a note to clients yesterday. He said that both his global strategy colleagues and Richard Bernstein's U.S. investment strategy team have upgraded the energy group. Mr. Rosenberg said the Canadian oil and gas group has seen its consensus estimates cut 13 per cent over the past three months. Furthermore, bottom-up analysts see a 44-per-cent decline in 2002 share profit and a 21-per-cent year-over-year decline in 2002 cash flow per share (CFPS). But the West Texas intermediate oil price is averaging $20.75 (U.S.) a barrel year-to-date and there is considerable price momentum heading into the second quarter, Mr. Rosenberg wrote. "Therefore, our $18 [per barrel] estimate may prove to be low as well," he said. "What we could see then is a real possibility that profit/CFPS estimates will be revised higher over the next few months and this could bring some of the momentum players back into the sector."