Q: Given a choice between investing in either Surge Energy or Cardinal Energy, which would you prefer and why?
Thanks!
Thanks!
5i Research Answer:
CJ is larger (about 2X) and has outperformed. Both are very cheap on valuation, and both have upside potential. CJ's dividend is higher as investors seem concerned on it, but its financial picture is not bad at all. We would be fine either way. SGY might have more 'bounce' potential since it has lagged, but we would side with CJ on size if one wanted a larger company.