Today, Craig Porter commented about whether TOG-T, WCP-T, TOU-T, TECK.B-T, PEY-T, IVN-T, CCO-T, CPG-T, ROXG-T, NCA-T, LIF-T, YRI-T, TV-T, PXT-T, VII-T, TOU-T, NSU-T, AQN-T, BTE-T, DGC-T, LUN-T, HBM-T, ROXG-T, VET-T, PD-T, BBI-X are stocks to buy or sell.
They’ve put together a great land package in the Montney in Northern Alberta, a very profitable play. The gas play contains a lot of liquid condensates which can be sold at a premium. They are in the centre of a hot play where companies like Encana (ECA-T), Nuvista (NVA-T), Seven Generations (VII-T) are all around them. This is in the early stages as they have only drilled a couple of wells and are just starting to bring it onto production now. Cash flow has just started to come. Feels the company will get taken out. Fairly inexpensive.
Drilling services. As the price of oil rises, exploration companies are going to start drilling again. A lot of service companies’ pricing has been really hurt over the past couple of years. This is now a turnaround time where these companies are going to be able to start increasing their prices. This also has exposure to the US, which will take some of the seasonality out of it.
Feels this is undervalued compared to its competitors. One of the knocks is the big mine in the Democratic Republic of the Congo with Freeport McMoran (FCX-N). The two are getting out and Chinese firms are coming in to take over. The question is, when they sell the company how do they redeploy that capital. Historically they have gone into unfriendly jurisdictions very early, waited for them to turn around and then sold them. Shareholders have done very well with that.
A big, 1 mine asset in Canada. It’s had a few production problems, which is what slowed the stock down over the past year. There are very few places where you can go and buy a mine that will produce hundreds of thousands of ounces every year in a jurisdiction like Canada. The lower Cdn$ helps as well. Thinks it will get taken over.
Historically, this has been a heavy oil producer. It has bought more heavy oil assets recently. Heavy oil trades at a discount to regular crude oil, because of processing. This is a call on if you think the price of oil is going higher. They still have some debt that they have to pay down. If oil goes to $70-$80, this company will do very well. In the $55-$60 range, there is not a lot of upside.
An independent power producer. Just made some acquisitions of wind farms. This was hurt at around the Trump election when there was talk of rebuilding coal. A very good stock paying a healthy dividend of 5.1%, which he doesn’t think is at risk. A utility like company which will give you utility like returns.
(A Top Pick Nov 21/16. Up 5.81%.) Mining in Eritrea. Started with gold, and then copper, and now zinc. It is getting into the right metal at the right time. They also made an acquisition in Serbia of a very copper/gold rich property. They will take the proceeds from the one mine and use it to develop the next. Pays a nice dividend of 4%-5%.
(A Top Pick Nov 21/16. Down 7.31%.) He still likes natural gas going out the rest of this year. Demand continues to pick up. North American gas inventories are down by about 10% from where they where last year. Industrial use is increasing. The company has a track record of building things and selling them off, and they have a big stake in this company.
A good name if you like zinc, which he does. They have 2 mines. One is in Peru where there are also some other high grade base metals. They have also redeveloped the Caribou mine in New Brunswick. Both mines are going well. If you believe that global growth is starting to accelerate again, base metals typically do well during that period.