Petro-Canada is trading at nearly half its 52 week high, at a multiyear low. The only explanation why this has happened is perhaps investors are worried that cheaper oil will make oil sands exploration less attractive and profitable. This is bogus!! Many countries have already reached "peak oil," including the US, and despite the recent push to renewable energy sources, oil will remain in very high and constant demand for decades to come. One day the world will be itching to get their hands on these types of oil reserves that are harder to bring to the market. I would argue that day was yesterday and PCZ will continue to grow its revenues and earnings handily as it taps into these massive reserves, especially as the technology to do so advances and becomes cheaper.
Trading at a minuscule 3.6 times 08 projected earnings and with a 1.21 price/book ratio (compared to 6 for the industry), this stock should see a significant recovery when oil rebounds and/or the current crisis of confidence in the market subsides.
