Bruce Sellery Enerflex Ltd EFX-T DON'T BUY Dec 13, 2000

Has been out of this sector for about a year, but currently has his eye on it. Part of the screening he does is now starting to see some names perk up into that area. This ranks in about the middle of his pack. He would wait for it to move a little bit higher in his ranking, as well as some improvement technically.

Nat Gas has bucked the trend a little bit. We made a bottom in September. We are at the top of the 200 day. We will probably run into resistance in the $15 range. It will probably do better than a pure oil play.

In energy, this turned out to be #1 in his valuations, with good potential of about 40% on the upside. He thought that the stock would base at about $14-$15. It got there and then dropped to $10, and then just as quickly shot back up again, so didn’t give him time to get the stock when it was cheap. If you are looking for a cheap oil stock, this is it.

Earnings came out today and it is up. There was a downtrend from 2014 until recently when it broke. It tested the trend line after breaking it and then bounced off it. It looks healthy.

(A Top Pick Nov 27/14. Down 14.04%.) Does a lot of natural gas projects globally. Made a large acquisition to diversify into Latin America. It looks like it is going to be a good, long term investment. However, there was a sharp drop off of CapX globally and this company’s backlog came off sharply in the quarter. He trimmed his position a little.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The merger is highly accretive to EBITDA and cash flow. The merger does make sense. It will lower cost of capital over time. They would essentially double their size. The deal is overall positive. It is normal to see some pressure with all-stock deals due to concerns about dilution. Unlock Premium - Try 5i Free

Two CFOs have now resigned in seven months. Also, Q3 (the current quarter) was seen as key in demonstrating EFX is making way with its execution strategy. Also, the company is in the middle of integrating an acquisition. The stock drop reflects investor concern amid this uncertainty, and considering, probably justified. 
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Great-looking chart. Had a long base of 2-3 years, which was ripe for swing trading. But now it's broken out, and that's good news. Parabolic move in a very short time, from $7.50 to $12.50, and it will take a break. When it does, that would be another great entry point as it might pull back. Doesn't think it will break the old neckline of $10.