Encana Corp (ECA.TO) Buy, Sell or Hold

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Daily Stock Opinions and Ratings

Encana Corp (ECA.TO)

4.96

-0.23 (4.43%)

as of Jan 24, 2020, 9:00:00 pm Market Open.

267 watching

BUY

Cheap. A good buy. Lots of upside. But needs the price of oil to move.

COMMENT

He likes it. Sold it a while ago. The yield is insignificant, but capital appreciation will be limited. You will be waiting.

DON'T BUY

The Canadian oil and gas index is still not indicating a bottom is here yet. At this price level, the market is questioning the balance sheet of this company. He is not a buyer under this scenario. We might see this trade down to $4. He would stay away.

HOLD

He once owned it. Energy had a run earlier this year, but is now back at all-time lows. Encana is now super-cheap at 5x EBITDA and 0.6x price-to-book and 6x earnings. A good balance sheet. They pay a small dividend, but are buying back some shares--he wants to see more than that. He urges energy companies to buyback shares, thus returning wealth to investors. It's too cheap to sell now.

TOP PICK

They just don't get any respect. A leading North American producer in Montney and the Permian. Their Newfield acquisition created some controversy at a very good price. They are already increasing the asset's efficiency and creating good cash flow. Yield 1.58% (Analysts’ price target is $8.59)

BUY

Will it rebound 40% this year? Canadian institutional buyers have shunned this; US hedge funds prefer it. They recently bought Newfield--ECA is know for its technical expertise and will find cost efficiencies in a poorly run company. They are confident they have squeezed out $1 million savings per well, and should have 30-40 wells in production to show the market that they have seriously improved production. They report July 31.

DON'T BUY

He would not pick this one. Their dividend is not favorable. They have consistently bought high and sold low -- moving in and out of natural gas at the wrong time. There are better choices out there.

BUY

This is so cheap and beat up, and it pays a dividend. The risk is up, not down.

BUY

It is at lower valuations like others in the space. It is about 3.5 times cash flow and announced a share buyback. 48% natural gas. If other OPEC players cut production then this one will do very well. But as a long term investor at these levels. It is very cheap.

PAST TOP PICK

(A Top Pick Mar 19/19, Down 33%) Last week they sold it. Took pain on it. He doesn't look the oil sector in general.

BUY

Foreign investors are fleeing the country and now this company is doing so because it is now very much an American company after recent acquisitions. He would recommend this company at these levels. It is trading at about 10 times earnings and a slight discount to book value. Any kind of good news in Canada will bode well for this stock.

DON'T BUY

High trade volume? She does not hold any energy producers at all right now, due to the takeaway issues and low commodity prices. Their $5 billion acquisition of Newfield turned the market off. The apathy in the market is not attractive to her as an investor.

BUY

The fair market value is more than 100% higher than current stock levels. ECA trades at a 36% discount with a good balance sheet and offers much upside.

DON'T BUY

Hard to take a position because of the differential. Would want to see the commodity price higher before he started a position. Go international instead if you want to play energy.

BUY

Has come back to support levels. At this stage, he'd be a buyer. If you already hold it, you'd be careful, as you wouldn't want it breaking support.

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Encana Corp (ECA.TO)