Tourmaline Oil Corp.One of my favourite companies on the Canadian stock exchanges is Tourmaline Oil Corp. Highlighted in the top 5 Canadian Stocks here at Invest in the Markets, TOU.TO is trading at a 52 week lows. Now there is always risk in purchasing stocks that are near 52 week lows because you don’t know if they’ll simply continue downward even further which is why wise investors follow the rule: buy the rise. Nevertheless, TOU.TO continues to increase revenue and production under the experienced leadership of Michael Rose. So what’s hurting this company? The deflating natural gas prices… so one way to watch for a bottom in this company’s share price is to watch for a bottom in natural gas prices. Then be prepared to act accordingly.
Painted Pony PetroleumPainted Pony Petroleum or PPY.A.TO is a junior oil and gas company. Similar to TOU.TO, it’s stock price has been tarnished by the broad brush of the falling natural gas prices. But the fundamentals of the company have not changed, making it a great deal for investors going forward. If you simply watch the technicals, 99% of which lag the price, you’ll be left behind on this name. So, like TOU.TO, watch the natural gas prices to determine where and when this company is poised for big gains.
Oil and Gas Stocks at Discount Prices
There are always opportunities in the markets… and these two companies are great examples of these golden opportunities. However, they also demonstrate the flaws of the traditional buy and hold approach to investing since buying this stock at the peak and holding it today would have cost you dearly. Timing is important, even for long-term investors. Instead, wait for some upside confirmation demonstrated by price and volume, the only real time indicators, and you’ll be poised to make money in the markets every day. For now, create a watch list if you don’t already have one and add these two names to it. It’s not everyday that you get Oil and Gas stocks at such discount prices.