Bonavista Energy Corp (BNP.TO)

(A Top Pick December 18, 2017. Down 25%). The company is about 75% natural gas. They generated cash flow last quarter of 25 cents on 68000 boe per day. He expects 2019 cash flow to grow to $1.08, compared to a share price of $1.47. Book value is $5.78. This will be a significant beneficiary of LNG Canada for 2023, along with Painted Pony, Birchcliff and Tourmaline.

The debt is simply too high for him. There are no buyers for this small cap stock. If you hold this, think about taking a tax loss.

Production is 68,000 boed with over 70% natural gas. They are right in the liquids rich fairway. He looks for cash flow to exceed $1.00 per share next year. Yield 3.0%. (Analysts’ price target is $1.82)

Really likes this company. Is ridiculously cheap. They had very good 2nd quarter results. He does not think their debt is a problem. This company will survive and will throw off tremendous amounts of cash. He recommends buying it on weakness.

It is focusing on flat production and paying down debt. He has a $7 one year target. Debt is 52% of equity and they will be paying it down. (Analysts’ target: $1.83).

Bonavista vs. Crew ( CR-T) Double down? Both have high weighting to gas, which will be a drag. Crew is cheaper on valuations, so go with that one. You don’t want to fight OPEC, oil will be range-bound.

Good volume. He'd like to see it reach $5, but that's far away. It's a news-driven. This stock is stuck.

Good volume. He'd like to see it reach $5, but that's far away. It's a news-driven. This stock is stuck.

He struggles to get over excited about it. There were balance sheet issues and oil pricing headwinds. This is a tier 2 or 3 name.

This is a very large company, 71% natural gas. The NAV is $4.73 and book value at the end of 2017 was $6.01, so this stock is trading very cheaply. His one-year target is $7 and his 3-5 year target is $20. (Analysts’ price target is 1.88$)

This is a tough investment. The company is trying to preserve cash, paying down debt and not growing. As a microcap with too much debt, he doesn’t see a lot of upside at this time.

Book value is $6.01 with a cash flow last year of $1.18. In 2016, this stock went from $0.90 to $5.44 in the same year. In 2014, the stock traded at $14.98. His one-year target is $7. The stock has a 4-cent dividend, for a 3.4% yield. (Analysts’ price target is 1.99$)

He thinks this company is ridiculously under-valued. The stock trades near 1 times cash flow with a book value of $6.01 and trades at 0.25 times book. He sees a $20 target in the next 3-5 years. The balance sheet is in very good shape. He likes Keith McPhail’s leadership. They have a strong hedge book that will guarantee cash flow again next year. Yield 3.29%. (Analysts’ price target is $2.07 )

They are a gas-focused producer. When you are stuck in this commodity that is having a hard time getting out of Canada, the assets can get valued close to zero. Once we get out of the woods for the gas price she would look at putting this into her portfolio. If you are patient, it is going to be worth a lot more in the coming years.