Value Microcaps Junior Energy

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Canadian Oil Stocks Priced for Disaster

This caught my attention this week as very astute investors thinks that Canadian oil stocks are one of the most hated investment sectors globally. When there are no more sellers left....

Paul Adreanola

Even Keith Shaefer (O&G bulliten newsletter Canada) is really throwing in the towel until the fall election. Sentiment is bad. This marks bottoms.

A lot of Canadian stocks specifically have fallen of a cliff recently and, if we are near at least a short term tradable bottom, you don't need to look any further from the go-to names.

I agree with Eric Nuttal below that three names that could bounce quick are Baytex (BTE.TO), Cresent Point (CPG.TO) and MEG Energy (MEG.TO). No need to consider any other names really.

Top Picks

CPG.TO is seen as the 'blue chip oil stock' by Canadians and MEG is a free cash flow machine for next few years and is still depressed down at CAD $4.00 because shareholders tuned down the Shell takeover in 2018 north of CAD $7.00/share.

MEG also sells WCS (Canadian heavy oil) which is in high demand globally with Maya trading higher than Brent and this phenomenon affecting North American too.

Another one to consider is Precision Drilling which is the 'blue chip driller' in Canada and sold off 50% in last 6 weeks when WTI dropped from US$66 to US$52 currently. Peter Imhof's top pick here:

Peter Imhof's Top Pick