Josef SchachterCanadian Natural RsrcsCNQ.TOCOMMENTDec 05, 2012

Great company and he's made some $$ in it. That said, 80% of the variability will be the price of oil. Oil is jumping all over (to say the least ;). Thinks oil will stay up here, and CNQ should do fairly well. He's comfortable riding out the cyclicality, but have it as just one part of a diversified portfolio.

If you're an O&G investor, this should be a staple in your portfolio. Bit of a misstep last quarter. High-quality name. Fairly valued here, but one to just hold.

The long-term oil outlook is not good, bearish. Crude in the 2030s is in the $40-50s. Short term, buy dips in energy. No, he wouldn't buy and hold this for 5-10 years.

Right now in the lower half of his universe (the "red zone"). Pulled back, and is underperforming. Chart shows it's starting to show signs of life; seems to be moving into a sideways range (let's say between $55-70). Not attractive on RSI, but is climbing up within that range.

It took a while for the TransMountain pipeline to get full. How long does it take to build a pipeline. CNQ is the first he'd buy and the last he'd sell. Very well managed, has little debt and returns capital to shareholders. Don't own it for the hopes that a new pipeline will be built this decade.

It took a while for the TransMountain pipeline to get full. How long does it take to build a pipeline. CNQ is the first he'd buy and the last he'd sell. Very well managed, has little debt and returns capital to shareholders. Don't own it for the hopes that a new pipeline will be built this decade.

Long-term outlook for crude oil is bearish. When he looks at the forward price of crude past 2030, it's in the $50s (and could get into $40s depending on supply dynamics).

Short term, sure, buy dips in the energy space. Is this a name he'd be comfortable buying here and holding for 5-10 years? Absolutely not.

A lot of oil companies have fallen since the highs of March/April. He added just this morning -- chart's attractive, price bouncing off 200-day MA. 

Likes it at almost every investment cycle. (She'd choose it as a Top Pick on every Market Call appearance if they let her ;)  Premium assets, premium management, low decline rate. Consistent cashflow.

Makes $$ when oil is $50. Higher oil price means that it can pay down debt faster and buy back more shares. A stock to own for the next 50 years. Yield is 4.27%, and dividend is growing. 

Oil prices are everywhere, and you have to be comfortable with that. Probably not a bad idea to buy when oil is ~$70 and everyone thinks the worst has passed. Trades in line with peers. Balance sheet in very good shape. 25% FCF from 2025-2027, on 3% production growth. Nice dividend. Even if oil goes down, it's profitable down to WTI at $50. 

If you think oil's going down, you don't want to buy this stock. It's a coin toss right now with oil at $70. There are easier risk/reward places than oil stocks right now.

One of the best-managed companies in the world. Their oil business is stable, but their gas side is overlooked. They are a top-3 gas producer in Canada. Good cash flow will continue and allow them to buyback stock and shrink their debt. 

Unique company. Tends to be very cyclical, but its counter-cyclical framework gives it a huge edge. Amazing business that gushes cash. Loves it. Robust dividend. As balance sheet comes down, will allocate more capital to share buybacks, and that will be accretive to EPS. 

If you own, sit tight and let it work. If coming in fresh, wait for a bigger pullback.

He won't bet on commodities on bad news. They grow production every year and watch costs. They have giant reserves. Long term, a headwind will be growing demand for EVs, as in China. Oil will eventually revert to $50-60 and this stock will correct a bit. CNQ can grow production 3-5% a year and its dividend 5-10%. He will own this long term. Is doing all the right things.

He's trimmed a bit. If oil comes back, it will retrace quite heavily.