Crescent Point Energy Corp (CPG): This 12% Yielder is Showing Signs of a Bottom

Crescent Point Energy Corp (CPG) — I last covered this Canadian oil and gas producer on March 18, noting its strong balance sheet and high dividend yield. The distribution is paid monthly, and with a current payout of $2.24 a year, shares yield more than 12%.
Raymond James has an “outperform” rating on CPG stock, while its analysts say the company is “one of the only high-yielding energy names with a sustainable business model in a prolonged lower oil price environment.”
Crescent Point Energy employs an aggressive hedging program, which protects a fairly large amount of its production in 2015 and 2016. The dividend should also provide support for shares even if WTI oil prices were to fall to $55 a barrel for many years.
Raymond James has a $29 price target on CPG stock. (It should be noted that analysts’ opinions change, and even though I try to keep up with those changes some may slip through the net.)
CPG stock is still a candidate for those seeking a high-yield investment with the possibility of a triple incentive.
First, the stock should benefit from the strong likelihood of a turn up in crude oil prices. Oil billionaire T. Boone Pickens predicts we will see $70 a barrel by year end.
Second, even though CPG stock is still in a bear market, there are signs that a bottom may be near. On Tuesday, buying volume exceeded the selling volume of Monday, which had been the highest volume day of the year. However, in light of Monday’s new low, it is prudent to reduce my buy under price to $18.50 from $21.50, and lower my trading target to $25 from $30, just below the 200-day moving average at $25.50. This would result in a return of 35%-plus.
Finally, we will be paid a handsome monthly dividend while waiting for CPG stock to reach my trading target.