Opinions Ryan Bushell
PrairieSky RoyaltyPSK.TOWAITJun 05, 2014
Stock price when the opinion was issued
As of Jun 05, 2026. Market Open.
You might be interested:
Exceptionally well run. All-time high today. His struggle has always been what's the fair multiple on a royalty company? Trades at 19.5x PE, 18x for next year, and FCF yield is 5% (not compelling). Yield is 3%.
He owns some in his income fund. If you're really bullish on oil, royalty is not the way to go.
Eric NuttallStrong performer over past several years, so trades at fairly high multiple (for example, twice that of FRU earlier this year). Extraordinarily good exposure to the Clearwater, good job with its business model. He struggles with what a fair multiple is. About 10% upside from here, and that doesn't do it for him. Yield is 3.8%, not overly compelling.
;fill-opacity:1;'/%3e%3cpath%20d='M31%2018.6001V30H8V18.6001L14.1334%2022.4334L19.4999%2014L24.8669%2022.4334L31%2018.6001Z'%20fill='%23EE5432'%20style='fill:%23EE5432;fill:color(display-p3%200.9340%200.3310%200.1956);fill-opacity:1;'/%3e%3c/svg%3e){kind=small}
Premium contentOur PAST TOP PICK with PSK has triggered its stop at $23. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 27%, when combined with our previous recommendations.
FRU is such a low-cost producer, it hasn't benefited as much as marginal producers have in the uptick in oil/gas prices. So its margins haven't increased as much. FRU asset package is so good, he's happy to own it despite this year's price action. He likes both names.
Rick RulePremium contentPremium contentPremium contentPremium content
Premium content
It is always hard to tell where the issue price is going to meet up with the market price on IPOs. He would rather wait, and see how it settles out and trades in the marketplace. If it is a good stock now; it will be a good one in 5, 10 and 15 years. No need to be in too much of a rush. Prefers Freehold Royalties (FRU-T), which trades at almost half the valuation and twice the yield.