It is the subject of a hostile takeover challenge.  He thinks you should get the opinion of more under-the-hood kinds of guys.  The market is trading above the takeover bid which indicates there is a possible higher bid.

There is a hostile takeover attempt in play.  He understands that this thing could trade a lot higher and there may be competing bids coming in.  The market senses there are potentially other players that could come in.  There is not much that technical analysis can do when M&A comes into play.

He is focused on WTI reaching over $80 next year and believes the market is over extrapolating the current heavy oil differential weakness too far into the future.  The stock has sold off by 30% recently and thinks the NAV is $20 at current oil prices.  They have large tax loss pools to draw on in the future.  Yield 0%.  (Analysts’ price target is $11.39)

He is incredibly bullish on oil.  Meg offers the highest leverage in cash flow relative to oil price.  They are a 100% pure play heavy oil producer.  Meg offers massive leverage.  Stock is down 16% this week.  Sees over 100% upside if $80 oil. (Analysts’ price target is $11.17)

A huge torque to energy prices.  He is forecasting $80 oil.  This offers the highest leverage to this price.  They have fully funded a production ramp in excess of 110 barrels per day.  After that they can harvest free cash flow and pay down debt.  They have a 50 year reserve body.  They could theoretically then pay you a 15% dividend for 50 years.  (Analysts’ target: $9.86).

Will these types of companies be viable in a low oil price environment? This one has proved that it is going to weather the storm, so if you are a high-risk investor but want high returns, then he would just temper the amount you are investing into companies like this.