Stock price when the opinion was issued
(Note the short timeframe.) This is a swing trade. Looking at the chart, you can see how the stock likes to go down to $90-ish, and then go up to $100-ish. That's 10% that you can trade and trade. He always buys on the bounce.
He feels that all oil will break out eventually. He's hoping to get $100 on this, though it's pulled back a bit. If it gets there, he'll probably sell and then get back in if it returns to the bottom. If it doesn't, his buy price was close to the bottom so he isn't losing anything.
Basic premise is that Canadian oil companies have unbelievable assets. Well north of 20% dividend growth. Great cashflow and shareholder returns. Oil's just broken a triple top on a point-and-figure chart, and these companies look as though they're about to reaccelerate.
He'd buy this one, and he'd buy CNQ.
Oil & gas sector has been consolidating. This name is breaking out to new highs, and that's a great tell. 25 years of reserve life. Three separate issuer bids, with another right now. Very high quality. If the commodity cycle goes on, energy will likely participate. These stocks should normally be weak this time of year, but they're making new highs instead; tells you there's lots of upside. His call is for longer-term higher oil prices.
Great company to protect your purchasing power. 30 years of consecutive dividend increases. Yield is 2.55%, with compound annual growth rate of 22% over last 5 years.
Oil prices weak recently, generally gets a little firmer coming into winter. Lots of Middle East conflict. US energy producers in general have performed much worse than Canadian, partly because of debate on whether shale can sustain production.
Longer term, the sector is attractive and these companies will generate a ton of cash and strong dividend growth. Near-term technical questions. He'd love to see price of oil stabilize. It has in last couple of days, but that's geopolitically driven.