With a wide range of energy options available to Canadian investors on the TSX, deciding which company to add or subtract from a given portfolio can be difficult to do; as of right now, most Canadian energy companies look cheap compared to longer term averages, due in part to valuation multiples declining substantially more than earnings have declined in recent years as investors grow increasingly pessimistic regarding the future of Canada’s oil & gas industry.
Unfortunately for investors in Baytex Energy Corp. (TSX:BTE)(NYSE:BTE), this has most certainly been the case over the past five years. Taking a look at the company’s five-year chart, we can see quite a massive decline from the near-$50 level in 2014 to the sub-$4 level today.
This massive drop has resulted in many value investors losing their shirt as the stock has declined in recent years, and many investors have been simply too nervous to pick up shares in recent years due to the company’s high debt load and the fact that insiders have recently been selling stock. In January, one of the company’s directors sold more than 90,000 shares in the company as Baytex’s stock price has ebbed and flowed slightly upward in recent months.
As always, a reminder that insider selling is in no way an indication of the direction a stock is expected to move in the near-term, and long-term investors should assess the fundamentals of said company and consult an investment advisor before making any purchases.
Invest wisely, my friends.
