RE:RE:Oil ‘super spike’ is coming: Dan Dicker Yes, lots of commentators are predicting lower oil. Take this interview with Martin Pelletier.
https://live.theglobeandmail.com/Event/QA_Top_Stock_Picks_From_Martin_Pelletier_at_TriVest_Wealth_Counsel?Page=0
He has a negative outlook on oil, so he suggests being defensive and sticking with low cost producers. And what do you know, his favourite is CPG.
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That brings us to the energy sector, which you're very familiar with. Do you see continued weakness in energy prices?
Yes, especially crude oil. Natural gas will probably be flat to range-bound. Energy stocks are discounting higher prices than the forward curve so it's probably good to be defensively positioned. Own low-cost producers.
What are your favorite low-cost producers right now?
Among the energy stocks we like Crescent Point for its very attractive 6.3-per-cent yield, and it has never cut its dividend thanks to a high netback and low operating costs. It has recently fallen 7 per cent with weaker oil prices, and it could go lower, representing a good buying opportunity.
martin.pelletier