Encana Corp (ECA.TO)

This has been a really bumpy stock, because it is one that doesn’t have its house in order. For the most part it has not been able to grow the business appropriately. They had to split off a few years ago, and that was followed by commodity prices whacking them. This has issues, so stay away from it.

She is not committing any new capital to energy, and hasn’t done so for the past year. This is a function of waiting for energy prices to stabilize. You want to see demand growth outpacing supply growth, and we haven’t seen that yet. Their balance sheet is a bit more levered than their peers, so if energy prices continue to stay low, they’ll have to do additional asset sales.

Thinks you can do much better in other names in the oil patch today.

Had a bottom at around the end of November at about $6.50, and if it breaks a bit below that we could have further legs down as it could bring in more sellers. This doesn’t rank well and there is no reason to pick it up.

In the bottom 15% of his database. Earnings estimates have been chopped 122% in the last 90 days. They are expected to lose $0.16 in 2016. That is an improvement off the loss of $.23, which is an improvement, but still a loss. The real key to this stock is the price of oil. His suggestion is that you Sell on strength. 1.2% dividend yield.

Natural gas typically does well from September into December. This warm weather right now is not good. Chart shows a continuous downward trend. We are not in a seasonal trend for natural gas and he would wait until April.

Add, hold or sell? Had sold his holdings months and months ago. It has gotten so cheap and it is showing a reasonable bounce, but it is still a little early. It is definitely a Hold at these levels. 3.87 % dividend yield.

(Market Call Minute.) Although they have gas exposure, they are working quite hard increasing their oil exposure. Their Premium play in the US is doing quite well.

This has certainly suffered from the fall in commodity prices, despite that they have managed to convert over to selling more liquids and being more liquids oriented. They are concentrating in 4 distinct areas that have tremendous potential. Rewards could be substantial. Dividend yield of 3.44%.

It got particularly hard hit because of the levered balance sheet, but it has come back. They are improving their balance sheet. He thinks it will survive, but is a higher risk/reward company. It is turning out to be a big winner. He thinks they are concentrating on their primary properties, but may sell one or two of them.

He bought recently, but the move last week would make him want to lighten up again. Debt is a problem and they may have to sell assets. It got a little too beaten up. He would be included to reduce it.

Trying to transition from an gas to oil manufacturing company, but with the prices so low it is difficult. (needs the capital). Has had some hiccups along the way. Is going to be challenged for some time.

Relationship with PrairieSky (PSK-T)? This was spun out to realize value for shareholders. Of the 2, she would way prefer PrairieSky which has a clean balance sheet. Even after Encana’s latest disposition, they still have a balance sheet that she does not like. She has been playing this from a Short side.

Chart shows a long downward trend and there is really nothing to hang your hat on. A system he uses points at a target much lower than where it is now.

Right now he is just sitting in neutral with all of the energy stocks. Some of them have come up in the ranks recently, but this isn’t one of them. It still ranks below the level where he would like to see it. Expect you would have to see the commodity price improve before it moved up in the rankings.