As I said yesterday, I have done well by this stock. However, I do not have much of it, and I will keep an eye on it as Oil and Gas stocks can be volatile. Also, my spreadsheet shows the values from Alberta Energy Company prior to 2002. The reality of when stocks amalgamate is that you have to look at how well they are doing from the perspective of where you came from and in this case, I originally had the Alberta Energy stock.
The first thing to remark on this stock today is the increase in Dividends. The dividends have gone up, in 2007 and in 2008 by 100% each year. Because of the price of oil, they are probably making money. This has also put the dividend payout ratio to almost 27%. In my spreadsheet, I have included figures from the last quarterly report of June 2008. These figures have brought the Accrual Ratio down quite a bit to 4.5%, which is good.
This stock has done somewhat better than the TSX over the last year and last 5 years. It has come down quite a bit, as has the TSX, has since June 2008. The TSX Energy Index and the TSX has done about the same over the last 5 years and this stock has done better. The TSX Energy Index and this stock have done better than the TSX over the past year. A number of people have a buy rating on this stock, especially because of the recent decline in price. A split of the stock into two entities is still expected.
The reason I buy any resource stock is because a lot of Canadian companies are in resource field. I find I pay more attention to Canadian resources if I have some stock in this sector. I think that it is necessary to pay attention, as they are so much of our market. However, I never buy enough for them to have any sort of an affect on my portfolio as I keep all my resource stock under 2% of my portfolio. This stock is a good Canadian Oil stock and buying it is a good way of paying attention to the Canadian Oil resources.
This company is involved in the acquisition, exploration and development of natural gas, crude oil and natural gas liquids. It is a merger of Alberta Energy Company Ltd. (AEC) and PanCanadian Energy Corporation (PanCanadian) companies. It is a world-class independent oil and gas company.
Its web site is http://www.encana.com.
See my spreadsheets on this company at www.spbrunner.com/stocks/eca.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on web site.
Post a Comment