Trade Alert

Trade Update: Cenovus Energy

_{Posted by Club Member Ben Cap$ 15.9.23}

Posted about buying Cenovus Energy in late July when Brent was just starting to break above $80. Brent is now above $94.

Entered Cenovus Energy at around $17.5. The investment thesis continues to play out as forecasted.

As of yesterday’s market close, Cenovus was at $20.8, so I’m up around 19% on this trade so far.

I still think energy stocks, including Cenovus, have room to continue going higher, given the sector’s valuation relative to the broader market. So, I’m staying with this trade for now.

That said, I do think Brent crude prices may be approaching its upper bound, so if oil prices were to inflect, I’ll probably look to take some profits from Cenovus.

I had hoped that Cenovus would rally much more with the move up in Oil prices, and while I still think Cenovus should trade closer to $30 per share based on its operating cash flows, from my experience energy stocks are very sensitive to downward changes in oil prices, and down swings tend to be violent!

Related Post: Brent is back above $80 per barrel. Buying Cenovus Energy

#Trade Update #Cenovus Energy #Oil #Brent #WTI

View Comments - Join the discussion for this trade!  

For more trade ideas visit the Daily Market Exchange.

Subscribe to receive more Trade Alerts.

About Us

The Daily Market Exchange is a global investment network.

It is a forum for elite market participants to exchange investment ideas and market views.

It is a platform for investors to collaborate and a hub for traders to share strategies.

Stock selection is hard, market timing harder so. Why do it alone?

Our members benefit from the network’s collective market insight and experience.

Have a stock idea, but not confident with your research to pull the trigger? Join our network and discuss your investment thesis with other members. Benefit from their sector experience and perspectives!

Struggling to find new investment ideas for your portfolio? Join our network and tap into our members’ latest ideas and research!