I changed oil companies yesterday. I'd held Crescent Point Energy (CPG) for some time and had done well with it. On a bit of whim I decided to switch to Suncor (SU). Both are often top picks by BNN analyst du jour.
So why the change? Recent sentiment seems to be tipping away from Crescent Point in favor of Suncor. There's pretty much a unanimous consensus that Crescent Point has one of the top management teams in the business. They're building a great company and running it well. On the other hand, some are beginning to question their expansion plans which regularly involve issuance of new shares. In 2010 they issued $375 Million of new shares in both June and October. There comes a point when it would be nice if they would settle down and run the company for a while without these regular dilutions. Alternately, many believe that Suncor's time has finally arrived. 2011 may be the year when its Petro-Can investment will finally pay off for this totally integrated giant.
I'm not saying that big is better but it's interesting to note that Crescent Point's market cap is $11.6 Billion while Suncor's is $58.9.
For a nice change I was on the right side of stocks moving in different directions with my two trades yesterday. I sold Crescent Point on a bit of a pop up, on a positive day, at $43.50. It finished the day up .13 at $43.37. I bought Suncor on a bit of a dip, on a down day, at $37.60. It finished the day down .20 at $37.67. On the day, I sold CPG at a high point and bought SU at a low point. Maybe I should consider becoming a day trader? NOT!
So why the change? Recent sentiment seems to be tipping away from Crescent Point in favor of Suncor. There's pretty much a unanimous consensus that Crescent Point has one of the top management teams in the business. They're building a great company and running it well. On the other hand, some are beginning to question their expansion plans which regularly involve issuance of new shares. In 2010 they issued $375 Million of new shares in both June and October. There comes a point when it would be nice if they would settle down and run the company for a while without these regular dilutions. Alternately, many believe that Suncor's time has finally arrived. 2011 may be the year when its Petro-Can investment will finally pay off for this totally integrated giant.
I'm not saying that big is better but it's interesting to note that Crescent Point's market cap is $11.6 Billion while Suncor's is $58.9.
For a nice change I was on the right side of stocks moving in different directions with my two trades yesterday. I sold Crescent Point on a bit of a pop up, on a positive day, at $43.50. It finished the day up .13 at $43.37. I bought Suncor on a bit of a dip, on a down day, at $37.60. It finished the day down .20 at $37.67. On the day, I sold CPG at a high point and bought SU at a low point. Maybe I should consider becoming a day trader? NOT!
No comments:
Post a Comment