Latest Expert Opinions

Signal
Opinion
Expert
BUY WEAKNESS
BUY WEAKNESS
May 1, 2018

He likes Blackbird. The stock is trading at $0.37 and has about $0.35 of hard value. They produce about 1200 boe/day, they have 4000 boe/day of capacity. They’re working with Tidewater Midstream to bring a new facilty into service in the area, which will be on in calendar Q2 of 2019, which will give them the ability to ramp up quickly to 10,000 boe/day, 50% liquids. He loves the management team. It has great drilling locations, which offers very economic wells in a great area. He has a $0.70 one-year target and a $2 five-year target.

He likes Blackbird. The stock is trading at $0.37 and has about $0.35 of hard value. They produce about 1200 boe/day, they have 4000 boe/day of capacity. They’re working with Tidewater Midstream to bring a new facilty into service in the area, which will be on in calendar Q2 of 2019, which will give them the ability to ramp up quickly to 10,000 boe/day, 50% liquids. He loves the management team. It has great drilling locations, which offers very economic wells in a great area. He has a $0.70 one-year target and a $2 five-year target.

Josef Schachter
President, Schachter Asset Management
Price
$0.370
Owned
Yes
BUY
BUY
May 1, 2018

Excellent news recently, with drilling success in Morocco and Egypt. They have lots of drilling to do. They will probably double production from 3200 boe/day to 7500 to 8000 by the end of this year. They are getting lucrative natural gas prices, $12 US, in Morocco. He has a $2 target for this year and a $5 target for the next 3-to-5 years. He thinks the price could back down in May and June, He thinks May will be a critical month because of the potential Iran sanctions and the potential change in production after elections in Iraq. If oil breaks $60, he expects a small decline in these stocks. This company reminds him of Centurion Energy, which was a natural gas play in Egypt that went from $0.66 to $12 in 4 years. Doubling production in a year, which SDX is doing, is awesome.

Excellent news recently, with drilling success in Morocco and Egypt. They have lots of drilling to do. They will probably double production from 3200 boe/day to 7500 to 8000 by the end of this year. They are getting lucrative natural gas prices, $12 US, in Morocco. He has a $2 target for this year and a $5 target for the next 3-to-5 years. He thinks the price could back down in May and June, He thinks May will be a critical month because of the potential Iran sanctions and the potential change in production after elections in Iraq. If oil breaks $60, he expects a small decline in these stocks. This company reminds him of Centurion Energy, which was a natural gas play in Egypt that went from $0.66 to $12 in 4 years. Doubling production in a year, which SDX is doing, is awesome.

Josef Schachter
President, Schachter Asset Management
Price
$1.040
Owned
Yes
BUY WEAKNESS
BUY WEAKNESS
May 1, 2018

He really likes this but has not moved it to his Action Alert list yet. Book value is $3.40, which is about where the stock is trading. It has a fabulous balance sheet. They have a little bit of debt, $83 million, but they own a position in Keane Energy which is worth much more than that, so this is effectively a debt-free company. They are the largest fracker in Canada. The stock is up about 20% from its lows of the last month because of the bounce. Wait until the stock drops again; he thinks it will go below $3.

He really likes this but has not moved it to his Action Alert list yet. Book value is $3.40, which is about where the stock is trading. It has a fabulous balance sheet. They have a little bit of debt, $83 million, but they own a position in Keane Energy which is worth much more than that, so this is effectively a debt-free company. They are the largest fracker in Canada. The stock is up about 20% from its lows of the last month because of the bounce. Wait until the stock drops again; he thinks it will go below $3.

Josef Schachter
President, Schachter Asset Management
Price
$3.340
Owned
Unknown
BUY WEAKNESS
BUY WEAKNESS
May 1, 2018

It is on his action alert list. His target is $3.70 this year and $8.50 over the next 3-5 years. The balance sheet is decent, $246 million debt versus $776 million equity. The company is doing 15,700 boe/day, they are 80%-plus light oil. They have a 60 cent cash flow. He thinks the stock could back off into the low $2’s. The stock offers a 4% yield. Below $2 it is a table-pounding buy.

It is on his action alert list. His target is $3.70 this year and $8.50 over the next 3-5 years. The balance sheet is decent, $246 million debt versus $776 million equity. The company is doing 15,700 boe/day, they are 80%-plus light oil. They have a 60 cent cash flow. He thinks the stock could back off into the low $2’s. The stock offers a 4% yield. Below $2 it is a table-pounding buy.

Josef Schachter
President, Schachter Asset Management
Price
$2.330
Owned
Unknown
DON'T BUY
DON'T BUY
May 1, 2018

People love this stock. It has cash on the balance sheet and no debt. They do 37000 boe/day. He prefers Gran Tierra, which also drills in Columbia. The stock sells at a significant premium to book value. The stock has almost doubled in the last year. Sell Parex and buy Gran Tierra on weakness.

People love this stock. It has cash on the balance sheet and no debt. They do 37000 boe/day. He prefers Gran Tierra, which also drills in Columbia. The stock sells at a significant premium to book value. The stock has almost doubled in the last year. Sell Parex and buy Gran Tierra on weakness.

Josef Schachter
President, Schachter Asset Management
Price
$21.960
Owned
Unknown
BUY WEAKNESS
BUY WEAKNESS
May 1, 2018

He prefers this to Parex Resources, which also drills in Columbia. GTE has a more significant growth profile. It has no problem on its balance sheet. The stock sells closer to its book value than Parex. If you have Parex, sell it and buy Gran Tierra on weakness.

He prefers this to Parex Resources, which also drills in Columbia. GTE has a more significant growth profile. It has no problem on its balance sheet. The stock sells closer to its book value than Parex. If you have Parex, sell it and buy Gran Tierra on weakness.

Josef Schachter
President, Schachter Asset Management
Price
$4.190
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
May 1, 2018

(A Top Pick July 28, 2017. Up 41%). The management team is great. They did 31,426 boe/day last year and should do 37000 this year. That’s a big increase for a sizable company. They’ve had success with both exploration and development drilling. His target is $5.50 plus for this year and $12 for next year. There is good upside and people should buy it any time it breaks below $4. The company will be drilling 19-21 development wells and 8-11 exploration wells. That’s a very high percentage of exploration wells. Initial results from the exploration wells have been very encouraging.

(A Top Pick July 28, 2017. Up 41%). The management team is great. They did 31,426 boe/day last year and should do 37000 this year. That’s a big increase for a sizable company. They’ve had success with both exploration and development drilling. His target is $5.50 plus for this year and $12 for next year. There is good upside and people should buy it any time it breaks below $4. The company will be drilling 19-21 development wells and 8-11 exploration wells. That’s a very high percentage of exploration wells. Initial results from the exploration wells have been very encouraging.

Josef Schachter
President, Schachter Asset Management
Price
$4.190
Owned
No