The week aheadThis was challenging week although not wholly unexpected. CPG went down by just over 2% for the week. There was definitely some profit taking going on. Prior to coming into the week, CPG had gone up for 8 straight sessions and gained over 25%. Lots of folks who got in sub C$5 in mid-May were in a position to sell their shares at a handsome profit.
There remains some headline risk associated with any announcment regarding Iran returning to the JCPOA. The negative reaction in the markets, if and when such an announcement is made, will be very short lived in my opnion,
This week RBC released updated coverage on CPG, which detailed just how undervalued CPG is versus other companies in the sector. I have detailed the points raised by RBC so I won't get into it again. But earlier today, Eric Nuttall tweeted about CPG specifically, again, showing the value proposition CPG represents. It's nice to see this company on the radar of invement banks and portfolio managers.
HFI research is predicting another large crude draw this week of over 6 million barrels. We'll find out Wednesday morning if EIA confirms.
