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Stock Strategist

Canadian Energy Picks from the Rubble

Long-term investors should take a close look at these stocks.

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Much like the rest of the world, the Canadian stock market is facing serious turbulence. The broad S&P/TSX Composite index has been battered by concerns over the banks' subprime exposure, asset-backed commercial paper, and falling commodity prices. The energy sub-index has fallen by 9% since the end of July. While market uncertainty might persist over the short term, we think the recent spate of selling has unearthed some solid energy opportunities for long-term investors.

A Declaration for Independents
The emergence of Canadian energy trusts in recent years has left behind only a handful of large senior independent exploration and production companies. We think that all four of the following Canadian producers have a host of rich opportunities, each with its own unique strategy. All are trading near or below an appropriate margin of safety to our fair value estimates.

Kish Patel does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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