RE:RE:RE:Canadian $@lluvyellowsnow: CPG has hedges of various amounts for the rest of the year. For the remainder of the year, CPG's hedges are slightly under 40% and hedged at about C$66. Not terrible. CPG has added some hedges for Q1 2021 at C$70+.
Big week is indeed coming. I am not smart enough to predict what OPEC might do. The Saudis are in full control of the oil market. I trust in them and believe that they would not throw away all of their hard work to bring the market to balance just to compromise it now.
I feel for you regarding getting in a bit early. i had about 25% of my exposure in Canadian O&G pre-pandemic. CPG was my largest position, which I had an ACB of C$3.70. I thought it was a brilliant position, but when the pandemic hit, CPG hit as low as $0.75 and I had lost 80% of my position. Fortunately, the company came out of the pandemic and I sold my CPG shares for $5.35 in March. I re-bought my position last month around the time of Q1 earnings release. Once I saw the mismatch in valuation, I began to sell my shares in MEG, BIR, CJ, GXE, and ARX to back up the proverbial truck on CPG. I'm currently in with an ACB in the high C$4s.
I hope that by averaging down you brought your levels to a point where you can breakeven and make some money -- you're probably already there with BIR. Good luck!
Iluvyellowsnow wrote: Thanks LiquidOctopus And HighAlpha for your responses. It seems that there are many variables that will have an imact on the top and bottom line and the higher Canadian dollar and hedging strategies (I think CPG hedges 40% at $65CAD or maybe that's WCP?) are just two of them.
Big week coming up with Opec+ meeting on July 1. I hope they show some restraint and only increase by 500,000 barrels as reported by some news outlets. If they go for 1 million or more the market will likely punish them.
Been a holder of CPG at $16, WCP $11 and BIR $5. Ouch! Averaged down this year.