Encana Corp

ECA-T

He has recommended it in the past, but is cautious now. Dig into their fundamentals. They have failed to form an uptrend. You can nibble at this name, but know your risk. Close at $8--that's the level to watch.

He would be cautious right now. We are seeing a pullback right now. We could go back to the December levels. Seasonally it is not there, nor with momentum. Come back and look in the fall.

They have become a north American company. Management has become astute on reading political winds and moving into the Permian and Eagleford along with strong holdings in the Duvernay back home. Tremendous value over the longer term. Yield 1.1% (Analysts’ price target is $13.71)

(A Top Pick Feb 21/19, Up 3%) It's been in an upward trend channel since the year started. Recent big volume is a good sign. The next upside target is $10, then $13-14 is a key point.

The oil side of ECA-T? The oil price has been creeping up, but oil stocks haven't been rising with it. The reason is that a fear of recession and a drop in oil demand. Now, oil is seasonal and has enjoyed a huge bounce since the start of 2019. Again, oil stocks haven't rallied along with oil. Encana is also natural gas which does well this time of year. ECA's chart is enjoying rising highs that should continue in April.

There's too much capacity in other sources of energy, so he's zero-weighted in all oil and natural gas. Markets dictate the prices of commodities, and he avoids businesses like this.

It's off, because energy is off and he doesn't see much improvement in the oil space. Encana has so many **** . The price is low, but it's not necessarily a value play. He's rather buy CPG-T.

He just bought this. This has fallen, based and is moving up now with higher highs. He's very bullish in commodities now, because it was beaten up and has alredy based. (Analysts’ price target is $9.85)

The best days for them are probably about to happen. They are going to change from 60% Canadian to about 60% US production. The US is having much more success.

The oil sector remains in limbo until this sector sees light at the end of the tunnel. If you own oil stocks, hold them, but don't add.

They have a low Return on Capital employed. But now it is very cheap. It is a treasure trove of resources. You can make a bet assuming that the management will make better decisions in terms of capital allocation.

The market de-rated this stock after last fall after making a big purchase in the U.S. which is a good idea because nat. gas But this purchase was too expensive and the market isn't confident Encana can integrate this company. There's also a long-term risk of oversupply in natural gas.

Encana vs. Suncor He prefers Suncor for its stability. Oil stocks are oversold and can rise higher. Q2 should be good for SU.

The Canadian market topped out in August and this stock had a clearly defined drop followed by a rally. There is strong, strong volume now. It has potential to about $12. (Analysts’ price target is $12.77)

He would be very careful with most oil names. But some are really too good to be true. This is one. Trading at 3.8 times EV to CF. Balance sheet is fine. He models growth at 25% for their earnings. This is a monster in a depressed environment. The only caveat is if oil and nat gas prices stay down or even go lower from here.