Eric Nuttall
Member since: Mar '10
Partner & Senior Portfolio Manager at
Ninepoint Partners

Latest Top Picks

(A Top Pick Dec 14/18, Up 24%) They are in the Permian, where production is constrained, but improving. The new CEO is strong and the company is trading at 4 times cash flow. He expects to see a large M&A wave to drive up trading multiples to 7 times cash flow, making companies like PE-N seem relatively cheap.
(A Top Pick Dec 14/18, Up 16%) They are predominately in the Permian and Bakken areas. They have about 40 years of inventory. Management is focused on paying down debt.
(A Top Pick Dec 14/18, Up 12%) He is surprised it is not getting more favour than it is. He is seeing good exposure to the Duvernay and Eagleford plays. It is trading at a 25% free cash-flow yield. He thinks they could even privatize themselves by buying back their shares.
Because the balance sheet has been repaired, when they trade at a discount to book value they can use free cash flow to buy back shares. They are trading at a 25% free cash flow yield -- in theory they could buy back their shares in 4 years using this strategy. Yield 0%. (Analysts’ price target is $3.90)
He has been critical of them in the past, but it is a new story. The new managment team understands the opportunity when their company trades below book value. They are trading at 26% yield of free cash flow. They should hold production flat, harvest the cash and buy back shares. They have infrastructure and production to monetize and buy back shares. Yield 0.76%. (Analysts’ price target is $7.03)