Skip to main content

The Globe and Mail

Crescent Point Energy is not a buy and hold stock

Crescent Point Energy

Hello Lou,

I bought Crescent Point Energy at $45.00. Ever since then it has been up and down -- mostly down. Do you have an opinion on where this stock is going?


Story continues below advertisement


Hey Knud,

Thanks for the assignment.

This will be the fourth time that I investigate the possibilities that surround Crescent Point Energy Corp. since 2010. The last analysis was conducted on Nov. 14, 2012, on a request from Adam. The stock was trading for $38.32 and it was advised that a downtrend was in place and that investors should proceed with caution. It was also noted that the stock offered a dividend yield of 7.2 per cent and offered opportunities to trade for profit within a range. CPG had been range bound with support at $37.00 and resistance at $44.00.

Another examination of the charts will assist in answering your question as to where the shares are going.

The three-year chart provides a new prospective on the trading range with a lower floor at $36.00 and a lower ceiling at $43.00. The shares formed a double bottom at $36.00 with one leg down in early December of 2012 and the second forming in early January of 2013. A double bottom is a reversal pattern which signals the end of selling pressure and the control of the market shifting into the hands of buyers. However the advance was short lived as the shares hit resistance at $40.00 and began another retreat. Currently the stock is now testing support along the 50-day moving average.

The six-month chart indicates that there is a downtrend in place that started in late January and continues to be the noticeable trend. In addition the MACD and RSI are neutral at best. The current yield on the stock is 7.2 per cent which may have been what influenced your decision to buy at $45.00. However, as advised in the November 2012 analysis, you have to approach CPG with caution. It offers an attractive dividend and trading opportunities but it is not a buy and hold stock.

Story continues below advertisement

Make it a profitable day and happy capitalism!

Have your own question for Lou? Send it to

Report an error
About the Author
Lou Schizas

Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality - and a true believer in the happiness-inspiring powers of capitalism. More


The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Please note that our commenting partner Civil Comments is closing down. As such we will be implementing a new commenting partner in the coming weeks. As of December 20th, 2017 we will be shutting down commenting on all article pages across our site while we do the maintenance and updates. We understand that commenting is important to our audience and hope to have a technical solution in place January 2018.

Discussion loading… ✨