Latest Expert Opinions

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Opinion
Expert
PAST TOP PICK
PAST TOP PICK
March 13, 2014

(A Top Pick March 12/13. Up 15.11%.) This one should lag in a rising boat environment for energy stocks, but should give you more protection on the downside. Still gives you some attractive value. Debt levels are coming down and they are redeploying cash into both US and Canadian operations. Thinks this could add another 15% this year.

(A Top Pick March 12/13. Up 15.11%.) This one should lag in a rising boat environment for energy stocks, but should give you more protection on the downside. Still gives you some attractive value. Debt levels are coming down and they are redeploying cash into both US and Canadian operations. Thinks this could add another 15% this year.

Robert Lauzon
Deputy Chief Investment Officer, Middlefield Capital Corporation
Price
$62.590
Owned
Yes
COMMENT
COMMENT
March 13, 2014

Had a great start since their IPO of about 30%. Thinks it needs to back fill its valuation and thinks they are about to do that. Has a nice multiple. Hopefully they can find some more properties to buy to give them a better slate and a more robust pipeline of oil projects. Wouldn’t shy away from looking at this again on another financing.

Had a great start since their IPO of about 30%. Thinks it needs to back fill its valuation and thinks they are about to do that. Has a nice multiple. Hopefully they can find some more properties to buy to give them a better slate and a more robust pipeline of oil projects. Wouldn’t shy away from looking at this again on another financing.

Robert Lauzon
Deputy Chief Investment Officer, Middlefield Capital Corporation
Price
$13.160
Owned
No
HOLD
HOLD
March 13, 2014

When you get your Spartan (SPE-X) shares in a few weeks, your overall portfolio holding in that entity will continue to move higher. Feels that Spartan, which is trading at around $2.60-$2.70 currently, is probably worth $3-$3.25. He respects the management team. Has been buying Renegade in order to get shares in Spartan for the last couple of weeks.

When you get your Spartan (SPE-X) shares in a few weeks, your overall portfolio holding in that entity will continue to move higher. Feels that Spartan, which is trading at around $2.60-$2.70 currently, is probably worth $3-$3.25. He respects the management team. Has been buying Renegade in order to get shares in Spartan for the last couple of weeks.

Robert Lauzon
Deputy Chief Investment Officer, Middlefield Capital Corporation
Price
$1.490
Owned
Yes
BUY
BUY
March 13, 2014

Now buying Renegade (RPL-X). You’ll be pretty happy with how this management team executes over the next few months.

Now buying Renegade (RPL-X). You’ll be pretty happy with how this management team executes over the next few months.

Robert Lauzon
Deputy Chief Investment Officer, Middlefield Capital Corporation
Price
$2.720
Owned
Yes
BUY
BUY
March 13, 2014

Has been in the penalty box over the last few years. He has been buying shares in the $5-$6 range. Company is now starting to perform operationally the way he had expected it to perform 2-3 years ago. If you get it at around $6.50, the upside is probably $7.50-$8, which is where it will trade along with its peers. Some view its debt level of just a bit over 2X Debt to Cash Flow, as a little bit high. Management knows that and they are doing what they can with any excess cash flow to pay down debt. If it can have a Debt to Cash Flow ratio at 1.5X by the end of this year, he thinks you will see an $8 stock.

Has been in the penalty box over the last few years. He has been buying shares in the $5-$6 range. Company is now starting to perform operationally the way he had expected it to perform 2-3 years ago. If you get it at around $6.50, the upside is probably $7.50-$8, which is where it will trade along with its peers. Some view its debt level of just a bit over 2X Debt to Cash Flow, as a little bit high. Management knows that and they are doing what they can with any excess cash flow to pay down debt. If it can have a Debt to Cash Flow ratio at 1.5X by the end of this year, he thinks you will see an $8 stock.

Robert Lauzon
Deputy Chief Investment Officer, Middlefield Capital Corporation
Price
$6.500
Owned
Yes
COMMENT
COMMENT
March 13, 2014

If the stock stays flat here and you clip an 18% yield, which is not a bad return. The risk is that eventually they may have to cut the dividend. Pretty hard for them to raise equity here to do more acquisitions or finance growth for issuing equity with an 18% yield. Have gotten themselves into a bit of a corner here with some poor operational results and packed on too much debt. $5 is probably the right price for the stock but your 18% yield could become 10% pretty quickly if they decide to cut it later this year. There are lots of companies out there that give you that same total return potential of 15%-20% without the risk of a dividend cut. These would be names such as Whitecap (WCP-T), Torc (TOG-T), Crescent Point (CPG-T), Twin Butte (TBE-T), Peyto (PEY-T) and ARC (ARX-T), which can give you 15% total return without a potential dividend cut.

If the stock stays flat here and you clip an 18% yield, which is not a bad return. The risk is that eventually they may have to cut the dividend. Pretty hard for them to raise equity here to do more acquisitions or finance growth for issuing equity with an 18% yield. Have gotten themselves into a bit of a corner here with some poor operational results and packed on too much debt. $5 is probably the right price for the stock but your 18% yield could become 10% pretty quickly if they decide to cut it later this year. There are lots of companies out there that give you that same total return potential of 15%-20% without the risk of a dividend cut. These would be names such as Whitecap (WCP-T), Torc (TOG-T), Crescent Point (CPG-T), Twin Butte (TBE-T), Peyto (PEY-T) and ARC (ARX-T), which can give you 15% total return without a potential dividend cut.

Robert Lauzon
Deputy Chief Investment Officer, Middlefield Capital Corporation
Price
$5.230
Owned
Unknown
BUY
BUY
March 13, 2014

Thinks the 9.5% yield is sustainable as long as oil is in the $85-$100 range. It is in their DNA to try and bump their dividend once a year and they have done that this year already. He is looking for it to be in the $6.50 range 12 months out, maybe higher. An 8% 9% yield and 10% growth is a pretty compelling total return for a yield and growth type of investment. Just bought 19.9% of Longview (LNV-T) at around $4.40. A very strategic buy.

Thinks the 9.5% yield is sustainable as long as oil is in the $85-$100 range. It is in their DNA to try and bump their dividend once a year and they have done that this year already. He is looking for it to be in the $6.50 range 12 months out, maybe higher. An 8% 9% yield and 10% growth is a pretty compelling total return for a yield and growth type of investment. Just bought 19.9% of Longview (LNV-T) at around $4.40. A very strategic buy.

Robert Lauzon
Deputy Chief Investment Officer, Middlefield Capital Corporation
Price
$5.810
Owned
Yes