In the Canadian Oil & Gas sector, investing in any company these days comes with an obvious set of risks. Most importantly, Canadian crude continues to trade at a discount to global crude markets, and this headwind for Canadian producers is unlikely to abate any time soon.
That being said, insiders at Kelt Exploration Ltd. (TSX:KEL), a small Canadian oil and gas company based out of Alberta, are buying. This company is an early stage oil & gas play, focusing on the exploration, development, and production of natural gas and crude oil properties, mostly centred in Western Canada.
The company’s share price has bounced around somewhat in recent months, and with Kelt being an early stage company, such volatility is to be expected over the long term.
It is a good sign that the company’s management team is willing to invest in the firm’s long term future, and for those looking to add a bit more risk to their portfolio for higher expected return, Kelt might be a company to consider. Of course, with any early stage company like this, be sure to have a well diversified portfolio of small positions before jumping in with two feet into one isolated company.
As always, a reminder that insider buying or 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.
