Latest Expert Opinions

Signal
Opinion
Expert
SELL
SELL
October 7, 2016

He would Sell this in favour of more conventional producers. It’s an awesome company, but from a stock perspective, he is kind of challenged to be asked to pay 27X cash flow. Feels the stock is approaching fair value.

He would Sell this in favour of more conventional producers. It’s an awesome company, but from a stock perspective, he is kind of challenged to be asked to pay 27X cash flow. Feels the stock is approaching fair value.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$28.600
Owned
No
DON'T BUY
DON'T BUY
October 7, 2016

A great company. Highly valued stock. Doesn’t see a lot of upside and there are other names he would prefer to own. He wouldn’t be buying this.

A great company. Highly valued stock. Doesn’t see a lot of upside and there are other names he would prefer to own. He wouldn’t be buying this.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$52.360
Owned
No
COMMENT
COMMENT
October 7, 2016

For frac sand, this is a company with the best balance sheet. Looking at 2018, there is going to be a ramp in terms of both volumes and product pricing power. A lot of frac sand mines have been operating at around 75% capacity. While the number of rigs and wells being drilled has fallen, the nature of the wells has changed, and companies are drilling longer laterals and fracing it more so there are more stages. For one well, you can use 200 train loads of frac sand. The demand for frac sand is increasing now, and could exceed current capacity so that new mines will be brought on. Although it is trading at the cheapest valuation, it is not cheap.

For frac sand, this is a company with the best balance sheet. Looking at 2018, there is going to be a ramp in terms of both volumes and product pricing power. A lot of frac sand mines have been operating at around 75% capacity. While the number of rigs and wells being drilled has fallen, the nature of the wells has changed, and companies are drilling longer laterals and fracing it more so there are more stages. For one well, you can use 200 train loads of frac sand. The demand for frac sand is increasing now, and could exceed current capacity so that new mines will be brought on. Although it is trading at the cheapest valuation, it is not cheap.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$48.320
Owned
Yes
COMMENT
COMMENT
October 7, 2016

He owns this because he thinks it is a misunderstood dividend paying company that offers a pretty healthy dividend yield. About a month ago, they had 3 royalty streams with exposure to Western Canada, a market that has been under enormous pressure. The company is selling off the restaurant business, which they got a pretty good price. They will now be hugely reliant on Mr. Lube, which has had positive same-store sales for 20 years. Because they are selling off their restaurant, their payout ratio is in excess of 100%, but with the cash they are getting, they could overspend a minimum of about 5 years. Thinks they will make another acquisition. Feels the current cash flow is sustainable.

He owns this because he thinks it is a misunderstood dividend paying company that offers a pretty healthy dividend yield. About a month ago, they had 3 royalty streams with exposure to Western Canada, a market that has been under enormous pressure. The company is selling off the restaurant business, which they got a pretty good price. They will now be hugely reliant on Mr. Lube, which has had positive same-store sales for 20 years. Because they are selling off their restaurant, their payout ratio is in excess of 100%, but with the cash they are getting, they could overspend a minimum of about 5 years. Thinks they will make another acquisition. Feels the current cash flow is sustainable.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$2.440
Owned
Yes
COMMENT
COMMENT
October 7, 2016

This has been slowly coming off the lows and is now at $2, which is still well down from where it was earlier this year. At $2, it is trading at about 18% free cash flow yield. Looking out, that is like 10X earnings on 2017, highly inexpensive relative to the underlying business fundamentals. An industry that is growing an organic rate of about 8%-10%. It is just going to take some patience.

This has been slowly coming off the lows and is now at $2, which is still well down from where it was earlier this year. At $2, it is trading at about 18% free cash flow yield. Looking out, that is like 10X earnings on 2017, highly inexpensive relative to the underlying business fundamentals. An industry that is growing an organic rate of about 8%-10%. It is just going to take some patience.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$1.970
Owned
Yes
COMMENT
COMMENT
October 7, 2016

This has one of the hired highest quality team’s asset basis in southern Saskatchewan. Have made an enormous amount of money for a lot of investors. Because of this, it trades at a higher multiple than some of their peers, but that is very much founded. ARC Resources (ARX-T) is selling off their Saskatchewan assets. There are very few names left with the financial capacity to go to the market to raise money. His guess is that Spartan would be one of them. He could see $4.82 share price in a year, a 40% upside.

This has one of the hired highest quality team’s asset basis in southern Saskatchewan. Have made an enormous amount of money for a lot of investors. Because of this, it trades at a higher multiple than some of their peers, but that is very much founded. ARC Resources (ARX-T) is selling off their Saskatchewan assets. There are very few names left with the financial capacity to go to the market to raise money. His guess is that Spartan would be one of them. He could see $4.82 share price in a year, a 40% upside.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$3.440
Owned
Yes
PAST TOP PICK
PAST TOP PICK
October 7, 2016

(A Top Pick Oct 22/15. Up 7.41%.) Sold his holdings. There are still headwinds on the weakness of Western Canada, and the lingering fear of overcapacity.

Air Canada (AC-T)
October 7, 2016

(A Top Pick Oct 22/15. Up 7.41%.) Sold his holdings. There are still headwinds on the weakness of Western Canada, and the lingering fear of overcapacity.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$12.310
Owned
No