Stockchase Opinions

Eric Nuttall Lucero Energy LOU-X BUY Jun 03, 2022

New company that was a re-cap of Petro Shale. Largest shareholder of the company. Waiting for company to find A&D opportunity. 33% free cash flow yield and 1.3x cash flow trading multiple. Very big supporter of company. Long term investment that is expecting to appreciate.
N/A

Stock price when the opinion was issued

oil gas
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BUY
2nr or 3rd largest shareholder. Expecting team to do a good M&A deal. Speculation on how large upcoming deal will be. Will continue to hold.
Unspecified
He owns it through an initial IPO. In six months it will be either much bigger or gone. The team can get the job done but it is in a tough market in North Dakota.
PAST TOP PICK
(A Top Pick Feb 23/22, Down 36%) Experienced management. In a hot geographical area for oil and gas, but investment moved away to more profitable areas when oil price declined. Working to ramp up production and strengthen balance sheet. Small cap, market's not interested. He's on the sidelines.
HOLD

Strong management team with goal of buying new assets.
US Bakken hard to buy assets in.
Expectation is for company to sell if don't buy any assets.
Well results have been strong, but unable to raise money on shares.


DON'T BUY

Very well-run, but is so small that few buy and sell this. Great managers, but no liquidity. He sold his holdings.