Husky Energy (HSE.TO) Buy, Sell or Hold

Husky Energy (HSE.TO)

6.76

+0.33 (5.13%)

as of Jan 5, 2021, 9:00:00 pm Market Open.

225 watching

HOLD

It’s broken through the resistance point. The volume looks pretty good. It’s one of the few stocks he would look into buying. A good short term upside target is $14.50. It’s had a major decline like others in the sector.

COMMENT

A full leveraged investment in this? Oh boy. He owns something similar. Own an integrated oil stock like this, if you play Canadian energy. Like the space, the stock is down now so much that it's attractive long term. You can make a ton of money in a leveraged play, possibly, but leveraging works both ways -- it would make him nervous.

BUY ON WEAKNESS

The stock has been shafted because people don't know where the growth will come from. On weakness on tax loss selling it could start a good total return.

PAST TOP PICK

(A Top Pick Jul 06/18, Down 46%) A year ago, energy was stabilizing. Now, it's terrible. Interesting: this stock price has been halved, but the metrics are the same. HSE is still really cheap: 3.7x EBITDA, 0.6x book value, 9x earnings. It beat its last quarter, but didn't matter. That's the story of half the energy sector. Pays a sustainable 4% yield.

WEAK BUY

Cash flow is down. Production down. Impacted by curtailments in western Canada. Going to have growth in China, going to add more thermal projects over time. Stock is cheap. Good total return story. Not a name for him, but can see that it makes sense for conservative investors. Yield is close to 4.5%.

WAIT

It has been beaten up and trades below December lows. Investors were disappointed when the MEG-T deal did not go through. There is a decent yield. He wants to do more work on this one. If the cash flow is as strong as they say, it is very possible they could increase the dividend -- maybe to $1 per share per quarter.

HOLD

He wouldn't buy it here, but hold it if he owned it. $15.92 is his target price. We'll see how their earnings do. This will benefit from rising oil prices. He's lukewarm on HSE.

BUY

Balance sheet in great shape. Started paying a dividend again. Lots of cash. Good prices on natural gas production. Book value is $19.51. For long-term investors, if the stock goes to $16-17 plus the dividend, that's a pretty good return.

COMMENT

The MEG-T deal did not happen and now people wonder where the growth will come from. Their guidance suggests growth in China. Book value is $19.51. 28% debt. It got hit in Q4. They make their money in refineries.

COMMENT

He owns Suncor and CNQ in this space. Husky is well-managed with good long-term assets. He has nothing negative to say about it; he just prefers these two other oil companies.

RISKY

HSE will move with the oil price. You can buy it here and trade it when oil spikes. HSE walked away from the Meg Energy deal, which surprised many. Maybe it will happen later.

BUY

He likes it and it is in his focus equity portfolio. There was a downtrend at the end of October and now we are testing higher highs and higher lows.

BUY

They had a strange outcome with the MEG-T hostile bid. They walked away. It raised the question of political interference from China. HSE-T is in the top 3% of all companies for him. You can't go wrong owning it.

DON'T BUY

It is run out of Hong Kong. There are other oil companies. He prefers others. You should not have to worry about how they are managing the business.

COMMENT

What happened with Husky? He has to be vague. HSE-T stepping away from its tender of MEG-T was not about Alberta curtailment risk. It was not about the lack of pipeline progress. Rumours suggest 60% of the shares were tendered. So it makes him think it was something too sensitive to be officially released. Perhaps there could have been an outside entity or government that would not allow Husky to purchase MEG. That is as far has he is going. MEG has been a huge winner for the production curtailment as the WCS differentials have tightened.

Showing 16 to 30 of 558 entries

Wealthica The ultimate 360° Tracker Your financial life in one place, automatically

Most Recent Experts

Jim Cramer - Mad Money

CNBC

Richard Orrell

RN Croft Financial Group

Stockchase Insights

5i Research

The Panic-Proof Portfolio (Stockchase Research)

Stockchase Premium

Stan Wong

Private Wealth Management, ScotiaMcleod

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Summer Sale

Husky Energy (HSE.TO)