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Oct
17
Tim Lambert
More Big Money Buying in Canada in the Billions
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While other articles on this site have mentioned the appeal of the North American energy sector, particularly those operating in Canada, Petronas, the Malaysian oil giant, is proving that point in a big way.  An article in the Financial Times reported that Petronas was putting $35 billion into a liquefied natural gas facility in the province of Canada.  On Canada’s west coast, that will allow for exports to booming Asian markets.

In addition to being bullish on the natural gas industry in Canada, that is very positive for companies operating in the country such as Suncor Energy (NYSE: SU), Canadian Natural Resources (NYSE: CNQ), Americas Petrogas (TSX: BOE), and Octagon 88 (OCTBB: OCTX).

As the chart below shows, the market is very bullish on Canadian energy stocks, with Octagon 88 doing particularly well. Octagon 88 is a small cap with valuable holdings in Alberta, the oil and natural gas rich province in Canada.  There have been a number of very positive reports on the bounty of these blocks in Alberta, recently.

Suncor Energy is a Warren Buffett holding.

It is big oil, too.  For those looking for income, Suncor Energy pays a solid dividend.  Over the last six months, Suncor Energy is up more than 30%.  Much of that can be attributed to the news that shares were bought by Buffett, but the outlook is very positive for the Calgary-based firm.

Americas Petrogas, based in Calgary like Suncor Energy, just reported very strong results for the second quarter.  Net revenue and sales volume is up. Also appealing to investors is that Americas Petrogas hired an investment bank to conduct a “strategic review” to raise the stock price.

There is much to attract investors to the Canadian oil sector, ranging from multinationals to legends like Warren Buffett to the individual.  The outlook for energy is bullish.  Canada is a very stable country, unlike others that produce oil and natural gas.  The Canadian energy sector offers much to all investors.



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