Thursday, November 6, 2014

Whitecap Resources May Be A Core Holding

I like Whitecap Resources. I have the same feel good feeling about WCP that I had years ago for Crescent Point Energy. With the price of oil depressed at the moment, my guess is that this is a fine time to buy a few shares of some solid junior oil companies. And I believe WCP is a solid company. (But be warned: I've been wrong with this call in the past.)

Crescent Point is well off its highs of the past few months and was trading today for as little as $35.25. WCP had a nice little pop today closing at $15.14 as it distances itself from its recent lows. I wish I had added to my position in CPG. I'm waiting for another retreat by WCP before possibly buying more.

The nice thing about having a conservative position in both is that if the price does not retreat, one can take solace in the fact one owns some shares in a fine company. If the price does drop, a conservative position allows one to buy more without taking on too much risk.

With CPG said to be aiming for a $50 share price some day in the future and WCP said by many analysts to be a stock to watch, both dividend paying oil plays will be core holdings for some time to come. (Be warned: Some believe CPG's dividend may be a little too rich, too good to be true. Do a little research on this matter before jumping in with both feet.)

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