Opinions
Bill Harris, CFA
Vermilion Energy Inc
VET-T
PAST TOP PICK
Dec 20, 2017
Stock price when the opinion was issued
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Lately they've had success in exploration in Germany, but near-term capex to exploit that is questionable. Are hard hit, now trading at half their book value. Are paying a near-6% dividend. He's held on. He may use VET as a source of funds, but otherwise won't sell it.
Canadian gas is where it's at. Interesting angle with this name is that they have gas in Europe -- Ireland, Germany -- and the market's not fully reflecting these assets in the price. Well managed, good tradition of being shareholder friendly via dividends, buybacks, and managing debt well. Underappreciated.
In this market, he doesn't want to chase highs. He's looking for stocks that haven't moved yet because the market is overlooking them. Yield is 4.78%.
(A Top Pick July 27/16. Up 9.79%.) A natural gas producer, but they produce into the European market at a much higher gas price. They hedge, and are in 4 different basins. It has a high valuation, but it consistently meets and pays its dividend, plus you get a little bit of growth. 50% of the Cap X is coming back to Canada from Europe. They've had incredible rates of return, and are now saying they are going to get the same rates in Canada. So far, it’s been true.