RE:From de Financial posts...Thumbs up red. Seems as obvious as a captain obvious commercial now but it took conviction to buy more in late October
red2000 wrote: The Financial Post reports in its Friday edition that shares of North America's hard-hit oil and gas producers are climbing as investors bet COVID-19 vaccine rollouts will ease the pandemic's travel restrictions and revive fuel demand.
A Reuters dispatch to the Post reports that the gains, which have pushed the Canadian Energy Sector Index up over 40 per cent since Nov. 9, come as oil prices rise above spring lows. However, the bounce still leaves the index down 36 per cent in the year to date.
Westbeck Capital manager Jean-Louis Le Mee says, "Some stocks still have the potential to double next year in our view, even after the sharp rebound of the last five weeks." Westbeck owns shares in MEG Energy, Whitecap Resources and Baytex Energy.
Hopes that vaccines will lead to increased economic activity are moving investors to beaten-up sectors. Reuters says Canadian producers look especially attractive now due to high cash flow potential, and as U.S. energy companies face possible restrictions under environment-minded president-elect Joe Biden.
Canadian Natural Resources, Suncor Energy, and Imperial Oil -- three of Canada's top producers -- have forecast higher output next year and bumped up their budgets.