Latest Expert Opinions

Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
April 3, 2018

(A Top Pick June 12, 2017. Down 9.98%). This has a great balance sheet and a high dividend. The debt is $246 million against $776 million equity. Book value is $3.33 compared to the price on the day of the interview of $1.95. The company traded at 1.7x book value in 2014 so it could be a $5 or $6 stock. His target for Surge for 2018 is $3.70 with a yield of about 5%. In this market, a good price for this company is $1.90 and a price of $1.80 would be excellent.

(A Top Pick June 12, 2017. Down 9.98%). This has a great balance sheet and a high dividend. The debt is $246 million against $776 million equity. Book value is $3.33 compared to the price on the day of the interview of $1.95. The company traded at 1.7x book value in 2014 so it could be a $5 or $6 stock. His target for Surge for 2018 is $3.70 with a yield of about 5%. In this market, a good price for this company is $1.90 and a price of $1.80 would be excellent.

Josef Schachter
President, Schachter Asset Management
Price
$1.970
Owned
No
PAST TOP PICK
PAST TOP PICK
April 3, 2018

(A Top Pick June 12, 2017. Down 48.76%). This is a driller. Oil service stocks are always more volatile. The drillers are all cheap now. This is on his Action Alert buy list. The company’s book value is $4.19. He has a $2.50 one-year target. This stock traded at $11 in 2014. In bull markets these stocks have a high beta. Western doesn’t have a debt problem. It owes $265 debt compared to $386 in equity. This is lower than Calfrac and Precision. Western’s biggest lender is AIMCO, which knows the oil industry well. AIMCO is also an investor in Western.

(A Top Pick June 12, 2017. Down 48.76%). This is a driller. Oil service stocks are always more volatile. The drillers are all cheap now. This is on his Action Alert buy list. The company’s book value is $4.19. He has a $2.50 one-year target. This stock traded at $11 in 2014. In bull markets these stocks have a high beta. Western doesn’t have a debt problem. It owes $265 debt compared to $386 in equity. This is lower than Calfrac and Precision. Western’s biggest lender is AIMCO, which knows the oil industry well. AIMCO is also an investor in Western.

Josef Schachter
President, Schachter Asset Management
Price
$1.100
Owned
No
WAIT
WAIT
April 3, 2018

This company is well managed. It is a low cost operator. Its price has come down enormously. Its dividend has been cut, but it offers a 72 cent dividend on a price (on day of interview) of $10.78. The company’s problem is its debt load, which has been rising. It is now $1.285 billion, up from $1.07, against $1.72 billion in equity. It is not good to have rising debt in a declining commodity market. Book value is $10.44. If he is right that oil prices will come down, the stock could go down significantly further, past $8 or beyond. At $8, the yield would be fabulous. He doesn’t cover the name because of the balance sheet issues.

This company is well managed. It is a low cost operator. Its price has come down enormously. Its dividend has been cut, but it offers a 72 cent dividend on a price (on day of interview) of $10.78. The company’s problem is its debt load, which has been rising. It is now $1.285 billion, up from $1.07, against $1.72 billion in equity. It is not good to have rising debt in a declining commodity market. Book value is $10.44. If he is right that oil prices will come down, the stock could go down significantly further, past $8 or beyond. At $8, the yield would be fabulous. He doesn’t cover the name because of the balance sheet issues.

Josef Schachter
President, Schachter Asset Management
Price
$10.880
Owned
No
COMMENT
COMMENT
April 3, 2018

He does not cover it yet. He’s starting to like the company and thinks their story makes a lot of sense. He thinks the downside is 10 to 20 cents and it could rise to $2 (from $1.38 on day of interview) if it came back to its 2016 high.

He does not cover it yet. He’s starting to like the company and thinks their story makes a lot of sense. He thinks the downside is 10 to 20 cents and it could rise to $2 (from $1.38 on day of interview) if it came back to its 2016 high.

Josef Schachter
President, Schachter Asset Management
Price
$1.370
Owned
No
COMMENT
COMMENT
April 3, 2018

This has been in the news over the last week because a disgruntled shareholder group wants it to do different things. This is the old Penn-West, which was $36 in 2008 and is now $1.33. The company announced that they are putting assets up for sale and looking at otherwise to maximize shareholder value. Their long-term debt at the end of 2017 was 328 million, equity is $2.17 billion with a book value of $4.29. They have a Cardium asset play, which people like. The company is cheap, but there are lots of cheap energy stocks. Do you want to own this particular one? They could potentially be a $4 or $5 stock in the next cycle.

This has been in the news over the last week because a disgruntled shareholder group wants it to do different things. This is the old Penn-West, which was $36 in 2008 and is now $1.33. The company announced that they are putting assets up for sale and looking at otherwise to maximize shareholder value. Their long-term debt at the end of 2017 was 328 million, equity is $2.17 billion with a book value of $4.29. They have a Cardium asset play, which people like. The company is cheap, but there are lots of cheap energy stocks. Do you want to own this particular one? They could potentially be a $4 or $5 stock in the next cycle.

Josef Schachter
President, Schachter Asset Management
Price
$1.340
Owned
Unknown
BUY
BUY
April 3, 2018

Has a $52 target and has added to his holdings recently. It's solid on an ongoing basis. Likes how they've diversified across North America. Solid dividend payer.

Enbridge (ENB-T)
April 3, 2018

Has a $52 target and has added to his holdings recently. It's solid on an ongoing basis. Likes how they've diversified across North America. Solid dividend payer.

Jaime Carrasco
Portfolio Manager, Canaccord Genuity
Price
$38.810
Owned
Yes
WAIT
WAIT
April 3, 2018

He covers Crescent Point but it is not yet on his buy list because he is looking for lower prices in Q2. The stock trades at half of book value with a strong dividend. The company traded over book value in every year from 2009 to 2017. The high water mark in 2017 was twice book value. Book is $16.75 (compared to a price on day of interview of $8.46), so the stock could easily double. If he is right about weakness in Q2, the stock could drop to $7. The price is leveraged to the price of oil. The balance sheet is good: debt is not a problem. Long term debt is $4 billion versus $9.2 billion equity. The company did deals when the market wasn’t expecting it and volume has not increased much, so there has been investor unhappiness. He thinks people have thrown the stock away and has a $16 1-year stock target.

He covers Crescent Point but it is not yet on his buy list because he is looking for lower prices in Q2. The stock trades at half of book value with a strong dividend. The company traded over book value in every year from 2009 to 2017. The high water mark in 2017 was twice book value. Book is $16.75 (compared to a price on day of interview of $8.46), so the stock could easily double. If he is right about weakness in Q2, the stock could drop to $7. The price is leveraged to the price of oil. The balance sheet is good: debt is not a problem. Long term debt is $4 billion versus $9.2 billion equity. The company did deals when the market wasn’t expecting it and volume has not increased much, so there has been investor unhappiness. He thinks people have thrown the stock away and has a $16 1-year stock target.

Josef Schachter
President, Schachter Asset Management
Price
$8.540
Owned
No