COMMENT
Assessing risk management relative to other banks? Great question, particularly for this bank. Had a relatively poor showing last 10-15 years. Trades at a discount multiple because of this. Now an opportunity since they have now exited all those other riskier businesses.
WATCH
Need a colder than average winter to make natural gas prices go higher. There’s lots of supply. If there is not a cold winter, you are done until hurricane season next year.
COMMENT
Change to SAGD technology? They won’t change their existing processes as they have invested billions and it wouldn’t be worth their while. If oil got over $100, then this would be a possible method for surrounding areas.
COMMENT
Chevron made a takeover offer for a shaley gas play with Atlas Energy, which is similar to Talisman, which boosted this stock last week but has pulled back since. If the stock went back to $20-$22 on a non-specific rumour, he would be a seller.
BUY ON WEAKNESS
On his watch list. Has a little trouble with the valuation. Likes the company, which is doing the right things. Would like $35 as an entry point. Has always traded at a premium valuation. Low $40-$41 target a year out.
BUY
Relatively expensive but pretty sure 3.5%to 4% yield and 8%-10% earnings growth so a nice place to be.