Enerplus Corp (ERF.TO) Buy, Sell or Hold

Enerplus Corp (ERF.TO)

26.78

-0.93 (3.36%)

as of Jun 3, 2024, 8:00:00 pm Market Open.

362 watching

DON'T BUY

This company, along with all of the ex oil and gas trusts have just been hammered with the continually falling natural gas price. In today's questionable gas environment, it is going to continue to be very tough.

HOLD

The long-term picture shows the stock has broken an uptrend line. This was followed by a long downtrend line so there is no surprise the stock has been breaking down further and further. At the current stage, he feels the stock is fairly oversold and there is a chance there could be some recovery rally. If you own, but a stop/loss on it. If it got to $20, then Sell.

SELL

Reminds him of Nortel given that people are hanging on in spite of the chart showing it could be a disaster. It was trying to stay above the $22 level, but once it broke down, the volume picked up and there was obviously some bad news. Technically there is no bottom on this as it keeps breaking down. This one is top ranked as a Short.

SELL

Looks really oversold, but it could keep being oversold. The chart shows no support. $22 was the last level of support. He sold his holdings. Yield of 11.6%, which probably tells you something else is going on. If you own, consider switching to Suncor (SU-T) or Husky (HSE-T).

COMMENT

All of these companies are being heard by natural gas prices, which will hurt distributions. This stock is back to the 2008-2009 lows. Higher risk name because of gas prices.

DON'T BUY

Sold her holdings about 1.5 years ago. Very solid dividend yield of about 10% but there is concern about the sustainability of it. Very large capital program of about $800 million this year. Have high-quality assets but they do require a fair amount of capital to get the growth and production.

SELL

If you get back close to your cost, take it. Recently raised money and will pay it back to shareholders over the next year. They should not be paying a dividend as high as they are. A business that is not shareholder friendly. Ultimately shareholders are losers.

DON'T BUY

Concerned as to whether the yield and their production can be maintained. Prefers the light and heavy oils compared to gas.

HOLD

Recently raised some capital so they should be able to maintain the dividend. This one is more than 50% weighted towards gas so wouldn't go into it at this time.

HOLD

A former income trust. You need to be comfortable with the outlook for oil/gas. Doesn't have the same management pedigree as someone like Canadian Natural Resources (CNQ-T) but it is a very competent management.

COMMENT

Have made some improvements in operations in the last year or so, especially in some of the smart metering that they are getting into over the longer term. That is supposed to help them. Relative to their earnings, the dividend is at a fairly high payout ratio so there is a question if they can stay at current levels.

DON'T BUY

Produces and sells natural gas but natural gas prices are not doing very well. Good management. 7.6% dividend, which should be a warning sign when it is yielding so much more than others. May be a sign that the dividend is not secure.

COMMENT

Feels the dividend is sustainable. Based on their current CapX expectations, their payout ratio is just over 100%. Feels natural gas over the next 18 months will go higher and will benefit them. Putting a lot of money into the Marcellus but the shale gas in this area is a bit worrisome. As a single stock, don't Buy bit in a basket, it's OK.

PAST TOP PICK

(A Top Pick March 31/10. Up 34.05%.) Great name. About 50/50 gas and oil. Good growth prospects. 7.3% distribution, so while you’re waiting you are getting paid. Still likes and would Buy on a pull back.

COMMENT

Doesn’t think you will go wrong with this one. 7.3% yield is sustainable. Large and well managed. You could buy now or wait until oil comes off a little more.

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Enerplus Corp (ERF.TO)