Latest Stock Buy or Sell?

[Berman's Call today was preempted by breaking news.]

Market. Russia has one pipeline going through Ukraine to Europe. They are working on another one to get around this off shore. The US is increasing exports of LNG and so is able to sell to Europe now. He is an oil bear. Oil went to $75 due to rumours. But OPEC raised production and are saying they will continue to do so. He sees Oil coming down to the low $60s soon.

They have a plant coming on in Q2 of 2019 to bring their production up. The stock seems expensive now but there is a massive ramp up coming up. He has a $0.72 target. From there they can ramp it up even more.

They have a lot of debt but you have to look at the equity. They are about 9% liquids and 91% natural gas. Their stock popped last week because they announced on two wells. They are now finding more liquid rich opportunities. It is one of the names he likes. He projects $6 within a year. He feels the bargains are in the natural gas side.

He likes it. He believes it has a $6 one year target. He is waiting because of concerns on the oil price. They have minimal debt. We are trading below book value. They are buying back a lot of shares. The buyback price suggests the company thinks their stock is cheap. When oil gets below $60 he thinks the stock will get down to $2.80 and it would be a buy then.

He is not attracted that much to it because of disgruntled shareholders. The company has shrunk itself since last year. Their focus is to spend less than cash flow. They have other assets they might sell. The balance sheet is in good shape. But he thinks there are more attractive names out there even though this stock seems cheap. This stock needs something to wake it up.

Hold it if you own it. The dividend is very attractive. Management has done a fabulous job. In the low $40s it would make a lot of sense. The balance sheet is improving a lot from their current deal. The company has a lot of legs. It would be a strong buy in the low $40s.