Stock price when the opinion was issued
(A Top Pick Jun 19/20, Up 82%) Was bought by Whitecap two months ago. Was bought at an attractive valuation. Would continue to own Whitecap.
(A Top Pick Aug 06/20, Up 78%) Was purchased by Whitecap. Was offering very meaningful upside. Still likes the management team and would support them in the future.
This is the most recent convert to a dividend paying model and what he likes is that management has about $47 million invested. Have used very conservative estimates for building the business model to figure out payout ratios. On the payout ratios, he has them spending 96% on cash flow and at the same time they are growing at about 8% with a 6% yield. Drill results they are achieving in the Cardium as well as their Monarch play and a potential play in the 3 Forks is going to allow them to increase guidance in the next couple of months to increase the dividend.