Latest Expert Opinions

Signal
Opinion
Expert
COMMENT
COMMENT
May 1, 2018

This is the star of the industry. They push a million barrels a day. The company has generated a lot of excess cash flow and have been using it to buy back stock. They will generate $10 billion cash flow this year and will spend $5 to 5.5 billion. They’ve increased the dividend to $1.44 and are doing buybacks. They are bringing in over 4 billion discretionary cash this year. They’ve repaired their balance sheet. Debt is down to $13.3 billion at the end of December compared to $16.1 the year before. Their equity base is $45 billion. The one problem for them is their operating cost. They have a large stake in Syncrude, and its costs are about $20 higher per barrel than Suncor’s own costs.

This is the star of the industry. They push a million barrels a day. The company has generated a lot of excess cash flow and have been using it to buy back stock. They will generate $10 billion cash flow this year and will spend $5 to 5.5 billion. They’ve increased the dividend to $1.44 and are doing buybacks. They are bringing in over 4 billion discretionary cash this year. They’ve repaired their balance sheet. Debt is down to $13.3 billion at the end of December compared to $16.1 the year before. Their equity base is $45 billion. The one problem for them is their operating cost. They have a large stake in Syncrude, and its costs are about $20 higher per barrel than Suncor’s own costs.

Josef Schachter
President, Schachter Asset Management
Price
$48.840
Owned
Unknown
COMMENT
COMMENT
May 1, 2018

They have gone through a lot of stress at the Board level but that seems to have cleared up. They have a strong balance sheet, with $328 million in debt compared to $2.17 billion of equity. Their production this year will be about the same as last year. He thinks this stock is cheap, like many of its peers, a humbler reflection of what it was in 2008.

They have gone through a lot of stress at the Board level but that seems to have cleared up. They have a strong balance sheet, with $328 million in debt compared to $2.17 billion of equity. Their production this year will be about the same as last year. He thinks this stock is cheap, like many of its peers, a humbler reflection of what it was in 2008.

Josef Schachter
President, Schachter Asset Management
Price
$1.410
Owned
Unknown
TOP PICK
TOP PICK
May 1, 2018

This was his top pick last year too. They are doing 37000 boe/day, production volume is up 16% from the year before. He thinks that going forward they will do 38000 boe/day. The company’s cash flow should be over $1 this year, so it is trading under 2x cash flow. He thinks the stock can go up to $7 in one year, and has a $20 target for 5 years. He pointed out on the 10 year chart that the stock has massive upside when the price of oil moves. For example, it went from less than $15 in 2012 to nearly $60 in 2015. Similarly in 2009, it was a $2.40 stock and a year later it was $23. They go from being hated to being loved, and right now, the natural gas story is getting strong. The company can make money at $2 gas, but he expects gas prices to go up as American exports of LNG rise. If AECO goes to $3 at the of this year, this stock will go a lot higher. The book value is over $15.37 and NAV is $13.68. This stock is ridiculously cheap. (Analysts’ price target is 1.58$)

This was his top pick last year too. They are doing 37000 boe/day, production volume is up 16% from the year before. He thinks that going forward they will do 38000 boe/day. The company’s cash flow should be over $1 this year, so it is trading under 2x cash flow. He thinks the stock can go up to $7 in one year, and has a $20 target for 5 years. He pointed out on the 10 year chart that the stock has massive upside when the price of oil moves. For example, it went from less than $15 in 2012 to nearly $60 in 2015. Similarly in 2009, it was a $2.40 stock and a year later it was $23. They go from being hated to being loved, and right now, the natural gas story is getting strong. The company can make money at $2 gas, but he expects gas prices to go up as American exports of LNG rise. If AECO goes to $3 at the of this year, this stock will go a lot higher. The book value is over $15.37 and NAV is $13.68. This stock is ridiculously cheap. (Analysts’ price target is 1.58$)

Josef Schachter
President, Schachter Asset Management
Price
$2.000
Owned
Yes
TOP PICK
TOP PICK
May 1, 2018

This is a very large company, 71% natural gas. The NAV is $4.73 and book value at the end of 2017 was $6.01, so this stock is trading very cheaply. His one-year target is $7 and his 3-5 year target is $20. (Analysts’ price target is 1.88$)

This is a very large company, 71% natural gas. The NAV is $4.73 and book value at the end of 2017 was $6.01, so this stock is trading very cheaply. His one-year target is $7 and his 3-5 year target is $20. (Analysts’ price target is 1.88$)

Josef Schachter
President, Schachter Asset Management
Price
$1.620
Owned
Yes