Having spent the full week digging under the hood of the energy sector, we are now well-positioned to deliver a powerful daily stock report that synthesizes all of the analyses from the week. Based on the findings, it can be concluded that energy is NOT the optimal sector for investment. Therefore, if you can avoid investing in energy, it might be advantageous to do so. However, if you must invest in this sector, Secure Energy Services is a standout for the reasons we will discuss. Secure Energy Services is a leading waste management and energy infrastructure company with an extensive network throughout Western Canada and North Dakota. This includes waste processing and transfer facilities, industrial landfills, metal recycling facilities, crude oil and water gathering pipelines, as well as crude oil terminals and storage facilities. The analysis on Wednesday highlighted that the infrastructure aspect of the energy sector is outperforming, positioning Secure perfectly in this area. The powerful SIA platform detects this relative performance very clearly. Note in the table above that shares of SES.TO are highly positioned within all the various reports of which it is a member. It ranks #5 within the SIA S&P/TSX Composite Index Report, which includes 223 companies across all industries, and is #1 in the SIA S&P/TSX Capped Energy Index Report. Furthermore, it ranks very highly in ESG reports, a growing segment of the investment landscape in recent years, and holds a strong #2 ranking in dividend reports. Additionally, it performs well in small and mid-cap reports, attracting the attention of advisors seeking exposure to non-mega-cap stocks. In short, it resonates with nearly all segments of portfolio managers in the financial industry. In the second table attached, we have listed all the companies in the S&P/TSX Capped Energy Report, where you can find Secure at the very top. It boasts a one-month performance of 27.87% and a year-to-date performance of 68.73%. Secure carries a perfect SMAX score of 10 out of 10, which further supports its outperformance against major asset classes, including stocks, bonds, cash, commodities, and currency alternatives.
Turning to the point-and-figure chart, we see that Secure has already experienced a substantial move. While examining only a few years of data might suggest there is no resistance, it is best practice at SIA to look back further in time to identify any potential resistance that needs analysis. Therefore, we produced a long-term chart that clearly indicates significant resistance levels, marked by long red lines dating back to 2013-2015. These levels have proven significant in the past, particularly in 2022-2023, when shares of SES.TO faced a glass ceiling, consolidating before breaking out in early 2024 at the $6-$7 level (see black circle). Again, shares stalled at the $11 range, encountering another cluster of resistance at the $12 level. However, the shares managed to break through, with recent pricing now at $15 and new resistance not far off at $15.91. Note also the top-line resistance at $20.18, which could present another ceiling of resistance.
Regarding support levels that could present excellent entry points for new investors, we identify recent support at $13.06 and additional support at $10.71.
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