Oil Sands Small-Cap Jumps On M&A Expectations (BQI, SU, CNQ, NOA, XOM, RDS.A, CVX)

Tickerspy’s Oil Sands Index

OIL SANDS INVESTING IDEAS

• Popular long ideas: SU, CNQ, CVE
• Popular short ideas: SU, NOA, CNQ
• Top dividend plays: COSWF, CVE, SU
• Pro favorites: SU, CNQ, CVE

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OIL SANDS COVERAGE

Companies focused on oil extraction from oil sands, tar sands, or extra heavy oil.

• Tepid Report From Suncor Holds Back Oil Sands Stocks (SU, BQI, CNQ, CVE, IMO, NOA)
• Oil Sands Stocks Crushed On News Reserves Will Be Tapped (CNQ, SU, IMO, CVE, NOA)
• Goldman, Morgan Stanley Turn Bullish On Commodities (SU, COSWF, CVE, AG, CDE, AEM, SLW)

OIL SANDS CHART

OIL SANDS METRICS

Avg. Market Cap:	$27.8B
Avg. P/E Ratio:	18.9
Avg. Div Yield:	2.5%

Extracting oil from tar sands is one of the more expensive means of acquiring the fuel, and small-cap miner Oilsands Quest (BQI) announced that it will explore strategic alternatives to enhance shareholder value in light of “significant incremental capital” needed to develop assets in Saskatchewan and Alberta. Chairman, president, and CEO T. Murray Wilson said, “We are experiencing the growing pains that are common to smaller oil sands companies with significant opportunities,” adding that the firm is confident that potential partners will recognize the “significant underlying value not reflected in our share price.” Oilsands Quest stock soared by 18% in pre-market trading on Wednesday, and investors will be watching closely for any further developments.

As a whole, the Oil Sands Stocks Index lagged the S&P 500 by -4% in the month ended Tuesday’s close, and Oilsands Quest was the sector’s biggest loser, off by more than -12%.

Elsewhere in the sector, Pro-favorite Suncor Energy (SU) is ahead by over 5% for the period. Suncor was in the top-15 U.S.-listed equity holdings of 69 Pros at the end of the second quarter.

While large-cap Canadian Natural Resource (CNQ) and small-cap North American Energy (NOA) round out the Oil Sands Stocks Index, a number of oil giants, including ExxonMobil (XOM), Royal Dutch Shell (NYSE: RDS.A), and Chevron (CVX), maintain sands assets as well. It will be interesting to see whether Oilsands Quest can line up a strategic partner, and if it will result in the equity spike traders are pricing in during today’s session.

Investors can track the Oil Sands Stocks Index for performance trends and a suite of other metrics at tikerspy.com.

Tags: BQI, CNQ, CVX, NOA, RDS.A, SU, XOM