I am somewhat stunned at how ECA has performed over the past 2 weeks. It just seems to want to go down no matter what. The earnings were pretty good..better than a lot of people expected. Natural gas and oil prices are stil relatively high..the weather is still cold. ECA has barely budge over the entire winter wheras CNQ and others have moved up a lot. I dont get it. Why is ECA so disrespected? If this keeps up somebody will buy out ECA..it seems awfully cheap.
There must be a reason why ECA has performed poorly recently, compared to other energy stocks. Market normally knows more than any individual.
Since ECA has to cut some spending for this upcoming year ($800 millions?), it seems to confirm that:
- ECA has a lot of tight gas fields which will cost more to produce. - ECA oil sand reserves will cost more to develop and refined (through upgrader?) - ?? ...
Although I believe ECA does worth more than the current price ($42.04), ECA may drop further if oil price goes down from here ($61.01).
IMO, ECA is value stock. It's just a matter of time for people to realize it. For those who want to buy it, the current situation is great, especially if you can time the market (oil price?) and get it for even cheaper.
I am 100% in agreement with you IMO and ECA are the value stocks. No body knows the bottom. They may drop more but when the market is up, these stocks will recover fastest. I love ECA and IMO. Best luck
A major institution recommends selling n. gas companies and shifting into oil. MMMMM? Drops Encana to underweight because of this gas to oil recommendation. I guess Lehman thinks Encana is a N Gas company. Maybe they should talk to Morgan who can set them straight. His coloring book clearly lists Encana as primarily an oil focused and valued company.
Bitumen reserves add to long life potential EnCana?s proved bitumen reserves of 657 million barrels are estimated to be sufficient to sustain approximately 30 years of anticipated production at Foster Creek?s forecast 2006 year-end productive capacity of 60,000 barrels per day. The company believes that significant future reserve addition potential exists associated with EnCana?s previously announced in-situ oilsands development plans, which have the potential to increase current production about 10-fold to more than 500,000 barrels per day by 2015.