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Stock Opinions by Josef Schachter

COMMENT
He's a long-term bull, but needs to see a COVID vaccine and a lower U.S. death count. He expects a slowdown after July 31 when PPP ends in the States, followed by weak demand there. During the pandemic sell-off, he recommended buying across the board. Since then, it's been overdone on the upside. He expects another pullback in the next few months, so investors should get ready and buy. Tax-loss selling at the end of the year will be another buying opportunity. He expects $50-60 WTI oil in 2021, and even higher after a vaccine is produced when oil demand will spike. However, he expects WTI to fall below $30 before this in the next couple months, because oil inventories are rising and the Saudis and OPEC have not met their oil production cutback goals. Expect supply-demand oil balance over the winter.
Unknown
DON'T BUY
On March 31, they reported that debt rose--109% debt-to-equity. A big problem: there's little activity in oil drilling and likely won't pick up until Q4. So, no reason to go after this stock. Nice bounce since the March low, but the next few quarterly reports will be horrible and their balance sheet is a problem. ESI needs higher oil prices, which he expects in Q4 at the earliest.
oil / gas
BUY on WEAKNESS
Their balance isn't bad nor is their debt. Oil production is up, but they are vulnerable to lower oil prices. A WTI/WCS price pullback--which he expects--will push this stock back below $4. So, don't buy now. Long-term, this is better, or add on pullbacks. If you bought in March, you could so some trading.
oil / gas
DON'T BUY
It rose 4x since the mid-March low. Production is and will shut down in Q2 and Q3, and won't return until Q4. They are seeking financial support from the EDC and BDC, which are not giving support to any Canadian oil companies. There needs to be more support though reports today say that the rules of eligibility will change. IPO also needs higher oil prices, which he expects in Q4.
Energy
BUY on WEAKNESS
They suspended the dividend due to low oil prices earlier this year. The balance sheet is an issue with debt rising to 57% now. The stock has significantly fallen since 2018, too. At least wait and buy on weakness. He expects WTI to fall below $30 in the next few months.
oil / gas
BUY on WEAKNESS
Debt has come down after selling many assets in past years from $2.7 billion down to $2.5 billion. Expect production to decline further in coming quarters. CPG will spend money in Q4 which will raise production numbers. It's bounced up very well from its bottom earlier this spring. He's buying on weakness. He likes CPG and its assets. The key is the recovery in oil prices in Q4, which he predicts.
oil / gas
BUY on WEAKNESS

A three-year time horizon It's a liquids-rich natural gas story, moving more into the Montney. Nice production increase of 19% in Q1. The balance sheet and debt are an issue because of the oil price plunge during the pandemic. This could fall below 70 cents if WTI falls $10 which he expects. He also expects a tightening of the natural gas market in western Canada because of the lack of drilling plus increased demand from Transalta as it goes from coal to nat gas. There are lots of good reasons to own this for the next few years, but in the meantime, buy on pullbacks. This will do well if you have a long-term horizon.

oil / gas
PAST TOP PICK
(A Top Pick Jun 20/19, Down 66%) Of course, have been impacted by oil prices. They continue to pay down debt. Q2 and Q3 will have lower cash flows. It's been beat up and have a slight bounce from the low. He'll buy in Q4 during tax-loss selling. Nothing to move this stock up in the near term, though. It could fall below 30 cents in the next few quarters. Likes the company and its assets.
oil / gas
PAST TOP PICK
(A Top Pick Jun 20/19, Down 60%) He expects their volumes to be flat in the next two quarters, then picking up. Buy on weakness under 70 cents. It's nearly triped from the March bottom.
oil / gas
PAST TOP PICK
(A Top Pick Jun 20/19, Down 26%) It's generating free cash flow and paying down debt. Buy this under $10 for the long term. This is the premier large gas company in Canada with a strong management team who will maximize shareholder value. Managers also own a lot of shares.
oil / gas
BUY on WEAKNESS
He really likes this and he bought it in the March bottom. They won't spend much in Q2 or Q3. Volumes could decline in coming quarters. They're paying down debt, yet still paying a dividend. Debt is declining. Definitely buy on weakness, below $1.60. This could consolidate weaker companies. Fine managers who also own a lot of shares.
Oil and Gas (Integrated Oils)
BUY on WEAKNESS
Expect less drilling activity but they will survive. They have first-class equipment in the US and Canada. It's a higher-beta name, thus more speculative. Buy this on weakness. He expects drilling to pick up in 2021.
oil / gas field services
BUY on WEAKNESS
Balance sheet is in good shape with debt at 42%. They just started to ramp up their assets in the liquids-rich Montney. Likes the company. Under 45 cents/share, then buy. He likes the managers. Buy this during the recovery, because he expects significant upside 12 months from now.
0
SELL
What to do with the Bonavista debt deal? https://globalnews.ca/news/7088006/bonavista-energy-calgary-company/ A sad ending to a good company with fine assets and managers. Problem was that their debt was maturing in November 2020 and debt holders refused to extend that debt two-three years. BNP also couldn't get debt relief from EDC or BDC. For shareholders, it's a tough choice now. You have three options: 1) you can wait for the 5 cents after shareholders vote in July, 2) sell in the open market now at 7.5 cents, or 3) own a part of this as a private company with no liquidity or trading value until there's an exit strategy 3-4 years later. He will sell (option 2).
oil / gas
BUY on WEAKNESS
An oil producer in Colombia. They have shut-in volumes and are not spending money, but rather are paying down debt. Expect a production cut in the next two quarter and only rising in Q4. Buy this below 40 cents.
oil / gas
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