As can be seen, he thinks that 95% of the companies in the energy sector are undervalued. In addition to FRU, he gave more favourable comments to TOU, CPG, BTE and TCW. Of note, he has an Engineering degree and worked at Chevron before becoming an analyst. GLTA COMMENT
Energy.(A Commentary)
31/08/2023
Energy.
Coming into 2020, it was the worst performing sector on the market. The scaremongering narrative of oil/gas coming to an end has been bought by a lot of uneducated investors.
Money's gone away from the sector and a lot of people refuse to go back. This has provided an opportunity for the rest of the investing community that looks at stocks in a pragmatic way. You can pick up cheap assets with a good business that will make a lot of money over time.
Oil's hitting 6-month highs. There's a reason for that: a supply/demand imbalance. Oil will probably stay here or go higher over the coming year. This will probably encourage more activity.
Most of the stocks in the sector are undervalued and a buy. If you buy now and just sit and hold, you'll be rewarded from here.
Alex Ruus
RISKY
Athabasca Oil Sands Corp(ATH-T)
31/08/2023
Close to bankruptcy 3 years ago, made it around the corner, and paid off debt. Now a cashflow machine. Be aware that it's a high-cost producer, so if oil goes back to $40 this stock is going way down. This could happen, for example, if China's in a huge recession. Great levered play if you want leverage to oil. See his Top Picks.
Oil / Gas
Alex Ruus
$3.765
Unknown