Latest Expert Opinions

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Opinion
Expert
COMMENT
COMMENT
September 15, 2017

He really likes this company. More of a manufacturing company than an oil/gas company. They should be generating gobs of free cash flow. The challenge in Canada is that there are ongoing issues around pipeline availability and egress take away solutions, and we have seen that manifest itself in the past quarter.

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He really likes this company. More of a manufacturing company than an oil/gas company. They should be generating gobs of free cash flow. The challenge in Canada is that there are ongoing issues around pipeline availability and egress take away solutions, and we have seen that manifest itself in the past quarter.

COMMENT
COMMENT
September 15, 2017

The most financially leveraged fracing company. The whipping boy if you are bearish on oil, fuel activity and sand. This is the one you would Short. The Short interest is back up to about 32% of the float. As you are seeing money come back into the market, we should step back. The backdrop is, we’ve had a good week this week. He is waiting to see if Long money comes into the market. He is bullish for frac sand, but this is not his favourite, because of the financial leverage.

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The most financially leveraged fracing company. The whipping boy if you are bearish on oil, fuel activity and sand. This is the one you would Short. The Short interest is back up to about 32% of the float. As you are seeing money come back into the market, we should step back. The backdrop is, we’ve had a good week this week. He is waiting to see if Long money comes into the market. He is bullish for frac sand, but this is not his favourite, because of the financial leverage.

COMMENT
COMMENT
September 15, 2017

Pricing is going up and demand is nearing a record high. They are at 100% utilization of all the equipment that they can man. They have demand for 3 more spreads, and can’t find people to actually work on it. This shows how tight this market is at a fairly crappy commodity price, where you have weak gas prices. Thinks this stock next year, can EBITDA $300 million. Trading at 4X EV to EBITDA on 2018, where it usually trades at 7 or 7.5 times, so still sees it as a $6-$7 stock. He likes this company very, very much.

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Pricing is going up and demand is nearing a record high. They are at 100% utilization of all the equipment that they can man. They have demand for 3 more spreads, and can’t find people to actually work on it. This shows how tight this market is at a fairly crappy commodity price, where you have weak gas prices. Thinks this stock next year, can EBITDA $300 million. Trading at 4X EV to EBITDA on 2018, where it usually trades at 7 or 7.5 times, so still sees it as a $6-$7 stock. He likes this company very, very much.

COMMENT
COMMENT
September 15, 2017

A merger between Precision Drilling (PD-T) and Trinidad (TDG-T)? Thinks you can make the thesis to own either one with a preference to pressure pumping, without necessarily making the bet that you are going to see M&A. The biggest argument is personalities.

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Precision Drilling (PD-T)
September 15, 2017

A merger between Precision Drilling (PD-T) and Trinidad (TDG-T)? Thinks you can make the thesis to own either one with a preference to pressure pumping, without necessarily making the bet that you are going to see M&A. The biggest argument is personalities.

COMMENT
COMMENT
September 15, 2017

A merger between Precision Drilling (PD-T) and Trinidad (TDG-T)? Thinks you can make the thesis to own either one with a preference to pressure pumping, without necessarily making the bet that you are going to see M&A. The biggest argument is personalities.

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Trinidad Drilling Ltd (TDG-T)
September 15, 2017

A merger between Precision Drilling (PD-T) and Trinidad (TDG-T)? Thinks you can make the thesis to own either one with a preference to pressure pumping, without necessarily making the bet that you are going to see M&A. The biggest argument is personalities.

SPECULATIVE BUY
SPECULATIVE BUY
September 15, 2017

If looking to clip a dividend coupon, the estimate is that it is sustainable down to about $45 oil. The dividend yield is high, because the stock’s been slaughtered on an overhang. The overhang was because RBC determined there was enough demand to do a fairly significant bought deal at $5.50, for them to buy an asset off of Husky. RBC had overestimated the market’s demand for Canadian small caps. It is back to a level now where it is extraordinarily cheap. He struggles trying to figure out where the big guys want to come in and bid it up. They’ve had too many stumbling blocks in order for you to get super excited. Dividend yield of 9.74%.

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Cardinal Energy Ltd (CJ-T)
September 15, 2017

If looking to clip a dividend coupon, the estimate is that it is sustainable down to about $45 oil. The dividend yield is high, because the stock’s been slaughtered on an overhang. The overhang was because RBC determined there was enough demand to do a fairly significant bought deal at $5.50, for them to buy an asset off of Husky. RBC had overestimated the market’s demand for Canadian small caps. It is back to a level now where it is extraordinarily cheap. He struggles trying to figure out where the big guys want to come in and bid it up. They’ve had too many stumbling blocks in order for you to get super excited. Dividend yield of 9.74%.

PAST TOP PICK
PAST TOP PICK
September 15, 2017

(A Top Pick Aug 30/16. Down 33%.) Did a great job of acquiring an asset out of Encana last year. Because of infrastructure, they were able to go in and steal the asset. The CEO doesn’t get as much credit as he should.

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(A Top Pick Aug 30/16. Down 33%.) Did a great job of acquiring an asset out of Encana last year. Because of infrastructure, they were able to go in and steal the asset. The CEO doesn’t get as much credit as he should.