CPG Quality mid-cap energy, 15-20% near-term 1W upside
Crescent Point Energy
Fundamental Analysis
Price to earnings ratio is around 1.4X (substantially lower than the sector and equities broadly)
Q1 Revenues were $950
Q1 Margin was 95% income to revenue
Following a 25% decline in recent price from $10.25 per share to below $7, $CPG appears to technically bullish on a long-term (6-9 months). Energy equities has a recent pull-back following the June inflation reports, however, upward momentum has just built up with the latest price now trading higher than the price 10 bars ago. The Commodity Channel Index on longer trading scales (4H) shows that $CPG has been oversold.
There is significant support channels at $6.90 (-5%) and resistance above at $7.95 (+9.42%). Above this, the next channels are $8.72 (+18.8), and $9.18 (25.1%)
Risks:
Exposed to global crude oil supply levels. Crescent Point Energy primarily is involved in the extraction of crude oil from Western Canada. Demand remains roughly around pre-COVID 2019 levels and therefore $WTI pricing is driven predominantly by supply. Currently, the price closed to below the 3-month mean, while the fundamentals of global crude supply have not changed significantly.
There are reports that the conflict in Europe may advance to various possible scenarios, which may (a) see the Russian Federation limiting and stopping export of oil to its current trading partners in Europe, bringing $WTI to above $300 USD based on current supply and demand figures, and (b) the G7 and EU may cap the price they may pay for Russian oil.
Competitors and related stocks in sector:
$VET Vermillion Energy
$OBE Obsedian Energy
$WCP Whitecap Resources
Fundamental Analysis
Price to earnings ratio is around 1.4X (substantially lower than the sector and equities broadly)
Q1 Revenues were $950
Q1 Margin was 95% income to revenue
Following a 25% decline in recent price from $10.25 per share to below $7, $CPG appears to technically bullish on a long-term (6-9 months). Energy equities has a recent pull-back following the June inflation reports, however, upward momentum has just built up with the latest price now trading higher than the price 10 bars ago. The Commodity Channel Index on longer trading scales (4H) shows that $CPG has been oversold.
There is significant support channels at $6.90 (-5%) and resistance above at $7.95 (+9.42%). Above this, the next channels are $8.72 (+18.8), and $9.18 (25.1%)
Risks:
Exposed to global crude oil supply levels. Crescent Point Energy primarily is involved in the extraction of crude oil from Western Canada. Demand remains roughly around pre-COVID 2019 levels and therefore $WTI pricing is driven predominantly by supply. Currently, the price closed to below the 3-month mean, while the fundamentals of global crude supply have not changed significantly.
There are reports that the conflict in Europe may advance to various possible scenarios, which may (a) see the Russian Federation limiting and stopping export of oil to its current trading partners in Europe, bringing $WTI to above $300 USD based on current supply and demand figures, and (b) the G7 and EU may cap the price they may pay for Russian oil.
Competitors and related stocks in sector:
$VET Vermillion Energy
$OBE Obsedian Energy
$WCP Whitecap Resources
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