the ice age lol
I guess the long term answer was NO
Interesting read since Sept 2011. It is good to see a positive result Ethan especially today with lots dumping Energy stocks.
May be a good time to buy huh?
The thread opened in Sept./2011 as others mentioned, so if you study the price chart backwards, to March/2011 for example, when the stock reached a high of $46+, you'll understand the thread's title [remember what was happening in the ME around that time that made oil go up?]. If you're a lil bored, you can go back as far as May/08, and then you'll understand dogleg's 'sure thing' wording.
I captured the lows of Sept. 2011, and frankly, given the prices of earlier & subsequent years, I was not expecting to see SU in the high $20's at this time.
Larry must be on round #2.
“Simplicity is the ultimate sophistication.”
I compared SU and XEG on a chart going back to 01/01/2008. XEG = iShares Canada Energy ETF. SU is the top holding in XEG at 17% weight.
As expected, SU is far more volatile short-term. SU offers more opportunities for quick trades.
Long term, SU and XEG are strongly correlated. XEG would be my choice to ride the long waves from the trough to the peak. Why take on the single company risk if you don't have to?
I prefer Husky though. They are also an integrated producer, but they have a lower PE and a higher dividend yield. I've been using a covered call strategy on HSE for the past year and am pleased with the results.
thank you, this is an interesting & valuable observation! But for anyone interested in stock + option combinations, XEG would be a weak candidate even if its price performance would be in the SU range. Suncor would pack far heftier option premiums & i believe they trade stateside as well, which makes the combo even more interesting.
this feebleness of options on canadian etfs means that investors interested in option strategies pretty much have to go the individual stocks route. Husky would be another good candidate for an option approach, as Ethan mentions