Six green days in a row for CPGSix green days in a row for CPG, with a gain of C$1.10 -- or, up just under 25% from the price it closed on Tuesday. I continue to believe that CPG is the most undervalued company on the TSX that produces more than 50,000 (boe/d).
If you read Craig B.'s words carefully in the Q1 earnings statement, it is clear that the Duvernay assets are being integrated smoothly and its production will surprise to the high end. It seems the current management's strategy, unlike the previous one, is to under promise and over deliver. I fully anticipate that CPG's production will exceed the 136,000 (boe/d) that management has guided for on the high end (again, if you read his words, he provides hints to that effect). With some of the highest netbacks in the industry, Q2 earnings should be incredible (even afte account for hedges).
With that said, it is important to keep things in perspective. Everytime a stock begins to underperform its peers, the most vocal shareholders (on places like SH) immediately jump to illogical arguments and begin to dump on the company. Just go through the recent history of the SH boards for ARX (when it was stuck in the $7 range) and, more recently WCP (when it was stuck in the low to mid $5 range) and SU (when it was below $28). These are all good companies, but the moment they starting showing any sign of stagnation in relation to its peers, shortsighted investors are ready to raise the white flag.
Over the past week, it is CPG that is having its day in the sun (in the previous couple of weeks it was MEG and BTE that were sizzling). CPG will certainly have to take a breather at some point after moving up so much so quickly. When it does, be sure to look at the company's fundamentals rather than be influenced by the jibberish that often gets propagated about the stock on boards like this.
Finally, two numbers to watch out for over the next few trading days:
1 year intraday high: $5.86 (we almost hit it today)
1 year closing high: $5.76 (we almost closed at this price today)
If we can take both of these numbers out, CPG should continue to do well. Good luck all.