The View from Canada - May 26

[dan_s]

Eric Nuttall: Why investors aren't late to the oil party
Look not to where energy stocks have been but where they are going
Author of the article:Eric Nuttall
May 26, 2021

Obscured in the fog of energy ignorance is a generational investment opportunity. Divested, shunned, and largely ignored, oil and gas stocks have fallen to valuations previously unheard of. With the backdrop of a multi-year oil bull market and an industry maniacally focused on returning capital to shareholders, I believe oil and gas stocks represent tremendous value with the potential to more than double over the coming years.

As an oil bull I have up until recently felt like someone who accidentally showed up to a party an hour early, expecting to come upon a rager, instead to be met with a host still warming the hors d’oeuvre and chilling the champagne. Only in recent months have other guests started to show up with the music getting turned on and conversation of increasingly bullish oil targets getting louder and louder. The guest of honour, however, the generalist institutional investor, has yet to show up. While usually one to arrive an hour fashionably late, generalists importantly represent a significant amount of latent buying power necessary to allow for a rerating of currently depressed valuations.

Watch video first, then read the rest of the article here:
https://financialpost.com/commodities/e ... -oil-party