Latest Stock Buy or Sell?
Today, Eric Nuttall commented about whether FTSI-N, WPX-N, RRX-T, YGR-T, BIR-T, VET-T, SLCA-N, PUMP-N, TCW-T, CJ-T, PONY-T, PNE-T, STEP-T, HSE-T, SPE-T, SRX-T, BXE-T, CPG-T are stocks to buy or sell.
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$8.720
Unknown
They're okay from an asset base, but their debt-to-cash ratio is a high five. He's bearish on nat gas, so he wouldn't buy natural gas names like this. Generally, he's biased in favour of oil.
Has nat gas exposure--and he's bearish on all nat gas stocks. Market cap is way too low for investors to really care for in this sector.
No surprises from their earnings announcement today. Trades at 4x cash flow and five years worth of production stream. Well-liked CEO, but this is a segment of the market that investors don't care about. Their 5% stock buyback isn't enough to impress him.
This is the widest divergence between oil prices and Canadian energy stocks he's ever seen. We're in a multi-year bull market with a big drop in oil inventories in the past year. Investors don't appreciate how demand is up. The bogeyman
is U.S. shale, but there is a labour shortage in Texas (2.5% unemployment rate there) so this is a constraint. In Canada, we have a profound pipeline shortage with maximum flow for oil and natural gas happening this August. These constraints along with continued rising demand amounts to supply shortages for the next five years. He's very bullish about oil prices. It's going to take time for Canadian energy stocks to rise, but the wide differential between WTI and Canadian WCS has been narrowing.
A boring stock: boring growth rate, dividend rate, cash flow compared to Canadian and American peers. Take your losses and move on.
One of his major holdings. He's very bullish on pressure pumping. Deal closed today where they bought a U.S. pressure pumper, Tucker. Will be accretive. They will have enough cash flow to buy back 90% of their stock--and there's a growing trend of buybacks in Canada and America. Step gives you exposure to the U.S. pressure pumping market. A cheap stock. It trades at 4.5x earnings and 2x EBITDA with growth potential in U.S.
They have lingering long-term issues though it's no longer a hated stock. They don't grow enough to attract capital, at 7% with a dividend. Midcap oil companies: investors don't care about them. All such companies should stop drilling and buy back stock. CPG will likely sell some assets and re-deploy their cash.