Eric Nuttall
Member since: Mar '10
Partner & Senior Portfolio Manager at
Ninepoint Partners
Ninepoint Partners
1720 Opinions
Latest Top Picks
(A Top Pick Dec 14/18, Up 9%) He since repatriated all the money back to Canada. It is up about 30% because they just made an acquisition. They are monetizing the assets. Oil has gone up since they bought the asset. He still thinks there are better opportunities. He thinks valuations in Canada are lot more attractive.
(A Top Pick Dec 14/18, Up 12%) A pure play pernium. We were lied to in terms of inventory, well depth and productivity there. There are better opportunities now north of the boarder.
(A Top Pick Dec 14/18, Down 28%) It has fallen off the radar screen. Their balance sheet is not as precarious as people think.
It has under-performed the oil price by 60%. It is higher than a 20% free cash flow yield. They plan to harvest free cash flow to pay down debt. He hopes they will then buy back stock. (Analysts’ price target is $2.97)
They have been buying back stock and sold mid-stream assets. It is trading at 18% free cash flow yield. It is 2.7 times enterprise value to cash flow, which is staggering considering multiple compression. They are not as exposed to pipeline bottlenecks as others. (Analysts’ price target is $7.40)
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Opinion
Expert
Chart
N/A
N/A
December 19, 2019
Market. We have seen a massive disconnect between oil and oil stocks. Oil rallied this year but you just starting to see oil stocks lift. The 'truce' between China and the US has taken the demand worry off the table. Investors on the sidelines thinking oil might be a little bit wobbly, last Friday saw the end of tax loss selling was the green light to go back into oil. The mid-cap space was the most abandoned. The real opportunity today is those mid-cap Canadian oil stocks. He is optimistic for 2020.
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Market. We have seen a massive disconnect between oil and oil stocks. Oil rallied this year but you just starting to see oil stocks lift. The 'truce' between China and the US has taken the demand worry off the table. Investors on the sidelines thinking oil might be a little bit wobbly, last Friday saw the end of tax loss selling was the green light to go back into oil. The mid-cap space was the most abandoned. The real opportunity today is those mid-cap Canadian oil stocks. He is optimistic for 2020.
DON'T BUY
DON'T BUY
December 19, 2019
He is bullish on Albertan-based natural gas because we have declining production and supply, increased take away capacity and inventories are at a 10 year low. The winter will eventually come and then there is the prospect of depleting storage. A lot of Nat gas companies have hedged away their Alberta gas exposure. Pony still leaves him a little uncomfortable, however. He likes BRK-T, TOU-T and ARX-T. The balance sheet of PONY-T leaves him pause.
He is bullish on Albertan-based natural gas because we have declining production and supply, increased take away capacity and inventories are at a 10 year low. The winter will eventually come and then there is the prospect of depleting storage. A lot of Nat gas companies have hedged away their Alberta gas exposure. Pony still leaves him a little uncomfortable, however. He likes BRK-T, TOU-T and ARX-T. The balance sheet of PONY-T leaves him pause.
oil/gas
BUY
BUY
December 19, 2019
Dividend sustainability is at about $48 for all energy companies. They could pay a 6.8% dividend while keeping production flat, theoretically.
Show full opinionHide full opinionDividend sustainability is at about $48 for all energy companies. They could pay a 6.8% dividend while keeping production flat, theoretically.
Oil and Gas (Integrated Oils)
DON'T BUY
DON'T BUY
December 19, 2019
The shorts are willing to pay the costs of borrowing and the dividend is 13%. Dividend sustainability is not an issue but he thinks you are beating a dead horse.
Show full opinionHide full opinionThe shorts are willing to pay the costs of borrowing and the dividend is 13%. Dividend sustainability is not an issue but he thinks you are beating a dead horse.
oil/gas
BUY
BUY
December 19, 2019
It's been a pretty decent winner. It may seem like you missed the rally, but these stocks got so beaten down. The rally, when compared to a 5 year chart, shows the upside potential. They have high quality assets, and a management team that is tried and tested; an extremely strong balance sheet and optimality on developing their asset with improved completion techniques.
Show full opinionHide full opinionIt's been a pretty decent winner. It may seem like you missed the rally, but these stocks got so beaten down. The rally, when compared to a 5 year chart, shows the upside potential. They have high quality assets, and a management team that is tried and tested; an extremely strong balance sheet and optimality on developing their asset with improved completion techniques.
oil/gas
BUY
BUY
December 19, 2019
They were deleted from the index. It is a very high quality asset and company. They are not managing expectations as well as perhaps they could have. They are drilling wells with a 6 month payout. He likes it. He sees pretty good upside next year.
Show full opinionHide full opinionThey were deleted from the index. It is a very high quality asset and company. They are not managing expectations as well as perhaps they could have. They are drilling wells with a 6 month payout. He likes it. He sees pretty good upside next year.
oil/gas
PARTIAL SELL
PARTIAL SELL
December 19, 2019
They want shareholders to vote to free up restricted cash to potentially buy back stock next year. The key challenge for them is liquidity. There are no sellers and few buyers. If you are looking to buy a small amount, they offer fairly good torque. It is one of the best horses to pick.
Show full opinionHide full opinionThey want shareholders to vote to free up restricted cash to potentially buy back stock next year. The key challenge for them is liquidity. There are no sellers and few buyers. If you are looking to buy a small amount, they offer fairly good torque. It is one of the best horses to pick.
oil/gas
BUY
BUY
December 19, 2019
They are the number one target in Canada for M&A. There are a list of potential acquires where it makes a lot of sense. They have enormous tax pools. It is trading at a 29% free cash flow yield. They are over levered. He sees a 25% upside from here.
Show full opinionHide full opinionThey are the number one target in Canada for M&A. There are a list of potential acquires where it makes a lot of sense. They have enormous tax pools. It is trading at a 29% free cash flow yield. They are over levered. He sees a 25% upside from here.
oil/gas
PAST TOP PICK
PAST TOP PICK
December 19, 2019
(A Top Pick Dec 14/18, Up 9%) He since repatriated all the money back to Canada. It is up about 30% because they just made an acquisition. They are monetizing the assets. Oil has gone up since they bought the asset. He still thinks there are better opportunities. He thinks valuations in Canada are lot more attractive.
Show full opinionHide full opinion(A Top Pick Dec 14/18, Up 9%) He since repatriated all the money back to Canada. It is up about 30% because they just made an acquisition. They are monetizing the assets. Oil has gone up since they bought the asset. He still thinks there are better opportunities. He thinks valuations in Canada are lot more attractive.
oil/gas
PAST TOP PICK
PAST TOP PICK
December 19, 2019
(A Top Pick Dec 14/18, Up 12%) A pure play pernium. We were lied to in terms of inventory, well depth and productivity there. There are better opportunities now north of the boarder.
Show full opinionHide full opinion(A Top Pick Dec 14/18, Up 12%) A pure play pernium. We were lied to in terms of inventory, well depth and productivity there. There are better opportunities now north of the boarder.
Energy
PAST TOP PICK
PAST TOP PICK
December 19, 2019
(A Top Pick Dec 14/18, Down 28%) It has fallen off the radar screen. Their balance sheet is not as precarious as people think.
Show full opinionHide full opinion(A Top Pick Dec 14/18, Down 28%) It has fallen off the radar screen. Their balance sheet is not as precarious as people think.
oil/gas
BUY
BUY
December 19, 2019
It is a mid cap. Their debt to cash flow is one times, which is very low.
Show full opinionHide full opinionIt is a mid cap. Their debt to cash flow is one times, which is very low.
oil/gas
SELL
SELL
December 19, 2019
There are other positions where he is more comfortable with management, the assets and the payout ratio. He prefers others. Buy TOG-T or WCP-T in tax loss selling.
oil/gas
BUY
BUY
December 19, 2019
You are seeing a rotation out of SU-T and CNQ-T and into CVE-T. This one offers you the best exposure to the improving backdrop. He thinks we are entering into a multi-year bull market for energy. There is still a dislocation in value between the price of stocks and where oil already is. This is a window of opportunity for companies like SU-T to go out and take advantage of it.
You are seeing a rotation out of SU-T and CNQ-T and into CVE-T. This one offers you the best exposure to the improving backdrop. He thinks we are entering into a multi-year bull market for energy. There is still a dislocation in value between the price of stocks and where oil already is. This is a window of opportunity for companies like SU-T to go out and take advantage of it.
oil/gas
DON'T BUY
DON'T BUY
December 19, 2019
There are a couple of knocks in terms of leverage. They have more older well bores. Management don't own enough stock.
Show full opinionHide full opinionThere are a couple of knocks in terms of leverage. They have more older well bores. Management don't own enough stock.
oil/gas
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