Wednesday, December 10, 2014

They all loved Crescent Point Energy:

Many “experts” quoted on still love Crescent Point Energy Corp. (CPG) - over the past two months they ranked the stock to be a hold (4), a top pick (2), a buy (9) and only 2 don’t buys. So now at mid day at $22.43 CPG is down 10% and the yield has soared to 11%. One of the recent comments of an expert (a few weeks ago at $35) says “He is quite optimistic on the energy space in general, but you always need to be picking good quality companies. Forgetting about the dividend, he likes this company’s growth profile”. Just to refresh - last July the price peak was about $47 and at the time just about all of the experts loved Crescent Point with “buys” dominating the last July – August window.

So here is the root of the problem - when “experts” get on business media – most talk their book. In other words few ever disclose what they intend to buy – or intend to sell – they just disclose what they own. So when they all own and love Crescent Point – who is left to buy?

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