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Seven Generations Energy LtdVII.TOSTRONG BUYJul 23, 2015Stock price when the opinion was issued
As of Apr 07, 2021. Market Open.
He thinks natural gas will be the energy of the future. He is not an energy expert. He has gone with Peyto. Consider taking small positions when there are big market down days. But they must be good companies that will survive. 7 out of 10 of these companies may go under. Think of them as call options.
VII-T vs CR-T? He would stay away from CR-T due to its debt level. VII-T has a good management team, but its slow down in growth highlighted their 50% decline rates in existing assets. This causes too much of their cash flow to still be required for maintenance. He would prefer NVA-T, which trades at a lower multiple of cash flow, has a better balance sheet, and lower decline rates on production.
A relatively new offering. The valuation is quite modest relative to where it could be in the future. This is a carefully thought out business strategy. It is a very strong growth pattern and is natural gas focused. He is impressed with what he has seen so far.