Opinions
Dennis da Silva
Crew Energy Inc.
CR-T
HOLD
Sep 28, 2018
$1.880
Stock price when the opinion was issued
oil
gas
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
DON'T BUY
He used to own this when natural gas was $3-$4. The equity value of this company is being ground down, day after day. It has to spend money to keep going. Be careful with these small cap names. These will be one of the first ones that banks will require to consolidate due to credit exposures and bank line covenants. A high risk investment.
oil
gas
BUY
Enterprise value is very cheap. But the issue is they have debt. They did an infrastructure deal to reduce that debt. A big part of that debt is a 2024 maturity at a low interest rate, so Crew will survive. Their liquids are in a condensate-rich area. The stock has been hammered because of high debt. He's bought more of this in the past week.
oil
gas
RISKY
It is a stock that is very cheap. With high energy prices, that has lifted all of these companies. It was as low as 10% of its book value. His fair market value has been going literally straight up. He would stay with it. He recommended it as a speculative buy a while ago as it made sense. He would prefer to buy a junior oil ETF rather than bet on one junior oil company.
oil
gas
It is one of about a dozen companies that will benefit from a positive FID statement on a west coast LNG project. He thinks the announcement of such a project could be weeks away. The company has one of the largest Montney land holdings in BC and it is trying to monetize that into real cash flow to de-risk the asset. They have had to sell other assets to keep things going.