RE:StrathCona.....Hold, buy or sell?Crescent Point (CPG) is a good company to compare to. Both have similar market caps of $6 billion. SCR produces more oil and condensate compared to CPG. The big difference is SCR has double the reserves compared to CPG.
For liquids production everyone knows Canadian Natural, Suncor, Cenovus and Imperial. How many investors know that Strathcona is the next name on that list? So far virtually no one. Today's trading volume makes that obvious. CPG has traded 1.6 M shares heading towards its daily average of 2.7 M shares with SCR having traded only 15,000 shares so far today.
It might be six months or a year before SCR and the cash flow they can generate at $90 oil starts to get noticed. Maybe six months after TMX opens next year SCR will start seeing some love. Even then, with 90% of their shares privately held, SCR still might not trade anywhere close to the multiples that a CPG trades at.
SCR presented at Josef Schachter's Catch the Energy conference last weekend at Mount Royal University in Calgary. Hopefully a few new investors attended and will start spreading the word about SCR.