Latest Expert Opinions

Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
April 17, 2018

(A Top Pick June 19, 2017. Up 2%). He sees meaningful upside this year and next. The company was not well managed this year, but the current CEO is retiring and the next one will be more focused on operations. This stock is trading at a discount to peers (and to the Permian average), it has exposure to the highest growth area, and there is a possibility of a takeout later in the year.   

Parsley Energy(PE-N)
April 17, 2018

(A Top Pick June 19, 2017. Up 2%). He sees meaningful upside this year and next. The company was not well managed this year, but the current CEO is retiring and the next one will be more focused on operations. This stock is trading at a discount to peers (and to the Permian average), it has exposure to the highest growth area, and there is a possibility of a takeout later in the year.   

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$29.860
Owned
Yes
DON'T BUY
DON'T BUY
April 17, 2018

This is a Canadian fracking sand company. He believes it’s a name that will be stuck in the penalty box for a while. They set expectations too high when they came to market, and then suffered from rail congestion and severe weather. There’s probably no good news coming until the Fall. There will probably be another couple of poor quarters.

This is a Canadian fracking sand company. He believes it’s a name that will be stuck in the penalty box for a while. They set expectations too high when they came to market, and then suffered from rail congestion and severe weather. There’s probably no good news coming until the Fall. There will probably be another couple of poor quarters.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$5.150
Owned
No
BUY
BUY
April 17, 2018

This has been absolutely pummelled and sucked into the natural gas vortex. It’s a good way to play an upcoming positive decision from Shell. You could see a meaningful rally in the next few months.

Crew Energy Inc.(CR-T)
April 17, 2018

This has been absolutely pummelled and sucked into the natural gas vortex. It’s a good way to play an upcoming positive decision from Shell. You could see a meaningful rally in the next few months.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$2.380
Owned
No
DON'T BUY
DON'T BUY
April 17, 2018

They have the 3rd largest gas reserves in Canada. He’s not buying it because his focus is on oil companies that have had a 50-to-70% dislocation between what oil has done and what the stock has done. He is also focused on service companies that are able to push through price increases, have net cash on the balance sheet, are trading at 2 to 3x EBITDA, with 20% free cash flow yield. Painted Pony doesn’t fit this mix. Pony has fallen 50% this year based on natural gas exposure. He’s been bearish on nat gas for a year. They’ve done their best to diversify their market but the backdrop for natural gas in 2019 and beyond is not good in Canada and in the U.S.

They have the 3rd largest gas reserves in Canada. He’s not buying it because his focus is on oil companies that have had a 50-to-70% dislocation between what oil has done and what the stock has done. He is also focused on service companies that are able to push through price increases, have net cash on the balance sheet, are trading at 2 to 3x EBITDA, with 20% free cash flow yield. Painted Pony doesn’t fit this mix. Pony has fallen 50% this year based on natural gas exposure. He’s been bearish on nat gas for a year. They’ve done their best to diversify their market but the backdrop for natural gas in 2019 and beyond is not good in Canada and in the U.S.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$2.180
Owned
No
COMMENT
COMMENT
April 17, 2018

They struck a good long term relationship with AltaGas. They were sold off due to its primary exposure to AECO. He thinks it is fully discounted, the selloff was overdone and if you hold it you will make money. But there are better bargains available.

They struck a good long term relationship with AltaGas. They were sold off due to its primary exposure to AECO. He thinks it is fully discounted, the selloff was overdone and if you hold it you will make money. But there are better bargains available.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$4.200
Owned
No
DON'T BUY
DON'T BUY
April 17, 2018

Very well respected, they drill some of the most economical wells in the country, it trades at a premium because people have been hiding in this stock. Other companies have more potential to rise because they were more beaten down.

Arc Resources Ltd(ARX-T)
April 17, 2018

Very well respected, they drill some of the most economical wells in the country, it trades at a premium because people have been hiding in this stock. Other companies have more potential to rise because they were more beaten down.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$13.920
Owned
No
BUY
BUY
April 17, 2018

This is one of the few remaining growth companies left. It doesn’t pay a dividend. It’s price dropped sharply after the Spartan acquisition because people thought that deal was horrible and it’s in the same space. It sells at 3.2x Enterprise value to cash flow, has 4 years of PDP reserves. Very inexpensive relative to its asset value. Problems: A high decline rate, and they are focused on the Viking, which doesn’t have a lot of running room left in the Viking. They recently acquired new property, which should be a source of news soon. They have also announced a strategic review.

This is one of the few remaining growth companies left. It doesn’t pay a dividend. It’s price dropped sharply after the Spartan acquisition because people thought that deal was horrible and it’s in the same space. It sells at 3.2x Enterprise value to cash flow, has 4 years of PDP reserves. Very inexpensive relative to its asset value. Problems: A high decline rate, and they are focused on the Viking, which doesn’t have a lot of running room left in the Viking. They recently acquired new property, which should be a source of news soon. They have also announced a strategic review.

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$6.520
Owned
Yes