Insights: Don't slip up being short Canadian oil & gas stocks

Ad blocking detected

Thank you for visiting CanadianInsider.com. We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following if you want an ad-free experience.

Canadian Insider Club
$299/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads
JOIN THE CLUB

* Price is subject to applicable taxes.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.

September 16th, 2019

Canadian mid-cap stocks are starting to benefit from a rebound in the Energy sector. The mid-cap oriented INK Canadian Insider (CIN) Index with its 13% exposure to the sector rose 1.6% last week which outpaced most North American benchmarks.

As Nick Colas from DataTrek Research explained in this August 22nd Real Vision interview (available on INK Ultra Money https://www.inkresearch.com/ultramoney/), lack of interest in Energy stocks has pushed the group's weighting in the S&P 500 down towards the 5% mark. He made the case less than a month ago that Energy stocks could provide a hedge against Middle East geopolitical risk which might put consumer discretionary stocks under pressure given oil's influential role in broad economic activity. If global fund managers start to unwind some of their big momentum bets that favoured stocks like Amazon (AMZN) and Apple (AAPL), some of that money could find its way into relatively cheap North American oil & gas names.

The United States is blaming Iran for the weekend attack that knocked out just over half of the kingdom's production. That increases geopolitical risk which should benefit gold and gold stocks. Meanwhile, it remains to be seen how long it will take for Saudi Arabia to restore production. Complacency towards world oil supply has received a reality check, at least for the moment. If oil prices remain elevated beyond the end of this month, global fund managers will likely have to revisit the widely-held assumption that the world is awash in oil. That could set the stage for a nice run in Canadian stocks and the loonie. While we are not there yet, the next few weeks will be interesting, to say the least. In the most dramatic of ways, crude oil has stolen the spotlight from the iPhone. We shall see how long the oil patch can hold onto centre stage.


Top 3 Gainers Last Week

Company NameStock Symbol1 Week %
Ensign Energy ServicesESI16.5
West Fraser TimberWFT12.5
AimiaAIM9.7

Top 3 Losers Last Week

Company NameStock Symbol1 Week %
Kirkland Lake GoldKL-9.9
Heroux-DevtekHRX-3.3
Air CanadaAC-3.2

Returns are as of the last trading day of the previous week.

Featured Broadcast

Insider of the Week

Prime Minister Justin Trudeau

INK Canadian Insider Index

1 Year Total Return Performance


Historical Performance

Annualized Total Return as of September 16, 2019 04:49 pm
1 Year -6.30%
3 Years 2.65%
5 Years 2.84%
10 Years 8.77%

5 Year Total Return Performance


The INK Canadian Insider Index is used by the Horizons Cdn Insider Index ETF (HII), a 2017 and 2018 Fundata Fundgrade A+ ® award winner.

To learn more about th ETF please visit:
https://www.horizonsetfs.com/ETF/HII

To learn more about the Index please visit
https://index.inkresearch.com
To start receiving a PDF version of this newsletter by email select it in your alert settings. If you do not have an account, join us here.

Comment On!

140
Upload limit is up to 1mb only
To post messages to your Socail Media account, you must first give authorization from the websites. Select the platform you wish to connect your account to CanadianInsider.com (via Easy Blurb).