Opinions
Jaime Carrasco
Obsidian Energy
OBE-T
COMMENT
Sep 27, 2013
$11.510
Stock price when the opinion was issued
oil
gas
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HOLD
A takeover candidate? He was wrong with this. He recently moved it from a buy to a hold. It's high-risk and high-reward, has "danger" written across it. He likes the idea of a takeover, but doesn't know if it'll happen. This could be a good play in oil/gas with a lot of potential. He hasn't sold it, but at the same bankruptcy remains a real possibility.
oil
gas
DON'T BUY
New interim president and CEO. Pretty good numbers on cardium wells. Issue is the debt. Debt is 22% of equity, but it's going the wrong way. Declining production and volumes. Not as attractive as the others. Need to show they can grow core numbers of the cardium. Guidance is negative. Capex is about equal to cash flow.
oil
gas
PAST TOP PICK
(A Top Pick Oct 22/18, Down 88%) He sold at $3.22, taking a big loss. They have a lot of worries. They are looking to sell the company. They might just liquidate the company, but clean up could be very expensive. He does not like stock consolidations and used that as a trigger to get out. He would not buy this now. He made a mistake -- when debt came down, so too did revenues.
oil
gas
His company has this as a neutral with a $12 target. What he would be looking at in the oil patch right now are the companies that have cash flow and growth in earnings and very low debt levels. The overly indebted companies are being squeezed by the banks right now and, because of that, have to sell a lot of their assets. The smaller, lean ones, the royalty ones, make a lot of sense. There is some shopping to be done in the oil patch because there is restructuring being done.