Today, Paul Harris, CFA and Eric Nuttall commented about whether ATH-T, BTE-T, MEG-T, VII-T, TDG-T, TCW-T, FRAC-N, FTSI-N, WPX-N, PXT-T, BXE-T, OBE-T, CJ-T, PE-N, SLCA-N, TCW-T, ARX-T, WCP-T, CNR-T, FSV-Q, DLTR-Q, JPM-N, MSFT-Q, RCI.B-T, BAM.A-T, DIS-N, NSRGY-OTC, BMO-T, BAC-N, BX-N, CVS-N, HIVE-X, IAG-T, ENB-T, EMP.A-T, V-N, CP-T are stocks to buy or sell.
Great Canadian company. California Closets, College Pro Painters are some of their brands. The other business is the property management business. Stock trades at 28 times earnings but it is a very capital light business with no fixed assets. Generate very high free cash flows. They can grow. Very good exposure to the US. (Analysts’ price target is $94.75)
Market. Stock piles are nearing record low levels. Lack of available inventory within OPEC and lack of investment in OPEC and non OPEC countries. Inability to meaningfully grow production after 2019. USA has a pipeline bottleneck until 2020. With continued demand growth, we see inventory continuing to drop. See inventories approaching all time lows by the end of next year. Demand will only decelerate in today’s economy at $120 oil.
40% underperformance by Canadian energy stocks relative to index. A lot are trading at 4X multiples instead of normal 7.5 to 8X. He sees a minimum of 50% upside and if he is correct at $80 oil, he sees 100% upside in Canadian energy stocks.
(A top pick July 19/17, down 21%) Is a pure play Canadian pressure pumper. Concerns were weak natural gas pricing and lowering of capital expense spending. They have been successful at share buybacks. Are being encouraged not to buy new equipment but continue to buy back stock. Trading at about 25% free cash flow yield.
Owned it for a long time. Technology moved from enterprise to consumer and now going back to enterprise. The cloud is still very small compared to other aspects. Still lots of companies can move and this company is well positioned for that. Generating lots of cash. Good profitability. They are in a sweet spot and continue to do well. They have a lead on the cloud.