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Originally Posted by bomber317
I would suggest not investing into O&G long term.
yes, all signs might point to oversold however the overall global sentiment is big shift away from O&G.
Institutional funds are now having mandates to not invest in O&G. Just overall less money into the sector.
Even the uptick in retail investors with Robinhood / wallstreetbets fad, none of that was targeting O&G
Is it fair? nope, especially when you see single digit P/E ratios for some energy companies like Suncor. And then you compare that to even a large tech like AAPL at 30-40x PE. I just pulled PE out to give a comparison, but you can pick any metric.
There is definitely volatility though, so you can play the range game to make some short term moves and make money that way.
I have not invested in O&G for the past 5 years, however, my eye-opening moment was the Pengrowth sale late last year.
https://financialpost.com/commoditie...or-740-million
https://www.cbc.ca/news/business/pen...gary-1.5344643
Their stock was at 20 cents, and they sold the company for 5 cents..... |
Money talks - at the end of the day if CNQ is paying a ~$2 sustainable dividend, most retail investors will continue to play. Yes there is a change in investing policy coming through to some of the very large funds, but if CNQ can align their ESG policies to appease those funds (ie. increased carbon capture, new technology, green investment) I can't see how they would not attractive to most.