RE: Substance11 Sep 2021 21:42
Most oil and gas companies are out of favour now. I see that Harvard’s endowment fund is joining the crowd and divesting its oil and gas investments and will no
longer invest in this sector. This lowers the price of oil and gas companies, making them very cheap at a time when they are gushing cash flow.
I happened to listen on internet radio to Leon Cooperman discussing his favourite investments right now. His number one theme was oil and gas for the same reasons as mine. Shockingly, his number one pick was also the same as mine, a Canadian natural gas mid cap, Tourmaline Oil. I was building a large position in Tourmaline back in March 2020 at $8-$11 C$ per share (along with a dozen other energy firms) because oil prices had gone negative and the companies were so out of favour. It pays a good dividend, which I expect will be raised. I also expect the company to continue to reduce debt, buy back shares, and announce “special” dividends, because of their tremendous cash flow. Closing price: C$38.38. It is still incredibly cheap.
I3E is is the same situation, but O&G 'will' come back in favor, these things always work in cycles. My guess is that folk will start to see the value of the increasing dividends due to Oil price rises.