Canadian Capitalist

A Canadian Personal Finance Weblog

Is Petro-Canada a buy?

December 25th, 2004 · No Comments

Petro-Canada (TSX: PCA, NYSE: PCZ) is a large integrated oil and gas company involved in exploration and production of oil (Canada’s East Coast off-shore, Alberta Oil Sands and International) and natural gas, refining and marketing (billing itself “Canada’s Gas Station”). At current prices, Petro-Canada is trading at an estimated 2004 P/E of around 8 and an estimated 2005 P/E of around 9. The main reason for an investment in PCA would be valuation: the shares are trading at a discount to historical valuation and also relative to its peers. The current dividend yield is about 1%.
I am seriously considering buying Petro-Canada for our taxable account. A BMO Nesbitt Burns research report on PCA can be found here.

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