Today, Josef Schachter and Hap (Robert) Sneddon FCSI commented about whether KFS-T, UNH-N, OTEX-T, EXE-T, ING-N, MAXR-T, LB-T, COTY-N, VET-T, DOL-T, PD-T, XBM-T, BYD-T, IBB-Q, TD-T, GC-T, PPL-T, KEL-T, EMA-T, CASH, TDG-T, SDX-LN, TCW-T, PONY-T, SGY-T, LXE-X, CPG-T, WCP-T, PD-T, BIR-T, STEP-T, CASH, GTE-T, ESN-T, BXE-T, SU-T, CNQ-T, CR-T, BBI-X, BNP-T are stocks to buy or sell.
Ensign Energy has a takeover bid on Trinidad. Ensign is trying to consolidate this business. The current offer is $1.68 which is less than what it is trading at today. He believes they have to come up with a much improved cash offer. Trinidad could consolidate this business on their own. Book value of Trinidad is $ 4.63. Why would you let your company go for less than book value? He doesn’t think the deal will happen. (Analysts’ price target is $ 2.50)
The strengthening US dollar this time of year usually weakens, but recently it has popped due to Turkey. Seasonally, there's always something this time of year that happens to hit the market, in this case Turkey. We see lower volumes this time of year. The put-call ratio now is really high. He sees the US dollar weakening a bit. Conditions are ripe for markets like the TSX to keep going, but the US midterms could pressure them. We may pause in October before a rally. The conditions, in general, are good for a rally.
It should be rising this time of year. It's just returned to the February low of $40. Now is a good risk-reward entry point. Seasonality is supposed to start in early-July. If it falls below $40, then it's showing weakness, which is due to rising interest rates. Generally, Canadian utilities are underperforming vs. US utilities.
Their debt is not a problem. Book value is $6.47. Would be a buy if the stock price went to the low $2.00 range. This is a stock you want to own for the long term. When gas comes back into favour, Painted Pony is one of the go to names.