Canadian Natural Resources
Another commodity stock that pros hate right now is Canadian Natural Resources (CNQ), an independent oil and gas company with proven reserves of 7.5 billion barrels of oil equivalent. Institutions sold off close to 10 million shares of CNQ in the last quarter, adding onto big year-to-date losses to decrease holdings in CNQ by $3.2 billion.
Like Newmont, CNQ's biggest catalyst for tumbling in 2012 has been the price of oil. Despite prolonged crude prices in the triple digits, oil prices have gotten shoved down into the low $80s, a drop that materially impacts profitability for oil companies like Canadian Natural Resources. Still, there's reason to be a fan of CNQ too right now -- the firm owns a significant number of low-cost oil producing properties, positioning that should help the firm keep a handle on profitability even under the pressure of slumping crude prices.>>5 Energy Stocks T. Boone Pickens Loves Right Now CNQ generates significant cash flows from its operations right now, and while it doesn't pay out a particularly exciting dividend (it yields just 1.5% at last count), that cash is nearly enough to fund capital spending on new drilling operations. The fact that CNQ doesn't need to pile on excessive amounts of debt from the capital markets for growth is a good sign. Still, as with Newmont, I'd recommend waiting for a turnaround in crude prices (and sentiment for Canadian Natural Resources) before buying this stock - institutions still hate it, after all.
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