Q: Hi 5 i Team - Although I still like Tourmaline I am considering trimming my position and using the proceeds to buy something else in the oil and gas sector but with more growth potential. First of all am I right in considering Tourmaline an income type of stock with little growth potential. Secondly could you provide a few O&G suggestions for growth, preferably mid cap and small cap but also large cap if you think it would fit into this theme. Thanks.
5i Research Answer:
TOU is up 23% in the past year and we would consider it as still having growth potential. This return does not include its special dividends. We consider it one of the best in the sector and would be reluctant to sell in order to 'seek' growth. A stock like ATH has more commodity price leverage but is smaller and has no dividend. So there is a trade off in a switch.
We would suggest, in addition to the above: CNQ (large cap), WCP, TVE, MEG, VET, AOI (higher risk).