Bullboard - Stock Discussion Forum Headwater Exploration Inc T.HWX

Alternate Symbol(s): CDDRF

Energy Oil & Gas E&P

Headwater Exploration Inc. is a Canadian resource company engaged in the exploration for and development and production of petroleum and natural gas in Canada. The Company has heavy oil production and reserves in the Clearwater/Falher formations in the Marten Hills, Greater Nipisi and Greater Peavine areas of Alberta and natural gas production and reserves in the McCully field near Sussex, New... see more

Add To Watchlist

TSX:HWX - Post Discussion

Headwater Exploration Inc > Buying Opportunity?

View:

Post by retiredcf on Jul 10, 2022 11:39am

Buying Opportunity?

I would appreciate if you can provide some insight into why Oil and Gas stocks came down so much so quickly. Are long term fundamentals still indicating that supply will remain tight? if yes, would you consider this a buying opportunity?

It can be hard to pinpoint reasons for such moves. Profit taking is the easiest answer, with energy the only strong sector this year. When investors rotate sectors, they often sell the winners. The supply situation has not changed much, but investors are now also very worried about recession, and energy is sensitive to economic growth. China is a big factor here. In addition, politicians seem hell-bent on targetting energy companies 'excess profits' (even though they are price 'takers'). That said, with valuations already reflecting recession and other worries, and corporate balance sheets in the sector improving quickly, we would see it as a buying opportunity for those interested in the sector, up to a reasonable weighting based on one's goals. (5iResearch).

146