Petro-Canada (PCA.TO)

BUY
Has been dropping lower and lower because the market does not like its group of assets. Have good global assets. Also a refiner and marketer. It will go higher over the next 3 to 5 years.
HOLD
Involved in a large number of products in the UK North Sea. Refining and marketing margins came down because of a glut of gasoline in the system. Prices should firm up during the driving season of summer. Likes their exploration. Good for a conservative investor.
TOP PICK
His model price is $79.25, a 75% positive differential. No one cares about this one. Not sure when it will get recognized.
DON'T BUY
Still in a downward trend. Chart is starting to show early signs of support. Short-term momentum indicators have started to turn positive during the last week. Recently just broke through its 50-day moving average. Choose something that has relative positive strength rather than relative negative strength.
DON'T BUY
(Market Call Minute.) There are better places to go.
TOP PICK
Likes its value. Have 17 exploration wells. They should be able to cash flow around $10 a share, suggesting that relative upside potential outweighs the downside. target of almost $60.
HOLD
Has been a favourite. The stock is dirt-cheap compared to the oils. Cannot understand why it’s so cheap.
DON'T BUY
Would hold if owned, wouldn’t buy. Not cheap enough, to many dangers out there.
WAIT
Fort hills is going to suck a lot of cash out of this company in the next 12 months or so. There is nothing else kicking in to bump cash flows up. It’s a value trap at this point. It’s cheap.
TOP PICK
Oil prices have skyrocketed, yet the oil stocks have gone down. Valuing it's output at $55 to $60 per barrel. Thinks it's been extremely undervalued. Gas prices have gone up explosively.
HOLD
(Market Call Minute.) Has disappointed yet again. Still a “show me” stock. At best it is a Hold.
BUY
Although they had good earnings, they came in below expectations. This is one of the reasons the stock has not been doing well. Multiples are very, very cheap because people don't believe the price of oil/gas should be where it is right now. Won't move as much as the others, but it is just fine.
COMMENT
Has been a frustrating ride. Outlook is relatively flat for the next couple of years. The Hibernia did very well and was a great field, but has peaked out. Exploration in North Africa and other places looks interesting. He is not expecting new large production increases. Has always traded at a discount to its peers because of execution reasons more than anything else.
TOP PICK
Fully integrated so it should be less volatile, but it is off 11.6% this year and only up 12% over the last year, total return. Has a great suite of assets.
PAST TOP PICK
(A Top Pick Feb 20/07. Up 7%.) For longer-term investors, this represents excellent value. Over the next couple of years, he could see cash flow per share in the neighbourhood of $10, which would make it a very cheap stock. Have a lot of good assets such as the oil sands, refinery margins and retail margins. Selloff is probably due to East Coast production decreases. Represents very good values.
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