Today, Josef Schachter and Fabrice Taylor commented about whether ARE-T, VET-T, MTY-T, CXR-T, KNT-T, PIF-T, BCE-T, KL-T, E-T, SOT.UN-T, TSGI-T, EL-X, META-Q, ALA-T, RAY.A-T, GCL-T, CNQ-T, SIM-X, GPV-X, BUS-X, ACB-T, CSU-T, PHO-T, TGIF-CN, JET-X, TDG-T, BXE-T, SDX-LN, BNP-T, PRQ-T, SDX-LN, TWM-T, PPL-T, STEP-T, BTE-T, CR-T, VET-T, RZE-X, CVE-T, BBI-X, HSE-T, CPG-T, ESN-T, TVE-T, PONY-T, TOU-T are stocks to buy or sell.
The company is sitting on $25 million in cash and has no debt. The company will hit 8000 boed before year end with upside in Egypt and Morocco, he thinks, and up to 20,000 boed within five years. He has a $2.00 per share target in the next 12 months and owns it personally. Yield 0%. (Analysts’ price target is $1.32)
(A Top Pick November 9/17 Up 8%) Production volume growth in Morocco and Egypt has been very positive, rising from 3300 boed in Q1 to over 4400 boed. New discoveries are being tied in by pipeline, allowing production to rise to 8000 boed by year end. He has a $2.00 per share target and owns it personally.
A Top Pick November 9/17 Down 64%) Natural gas companies, as a whole, have been taking a beating lately. People are worried about prices of $1.00 /mcf. LNG export capacity is sopping up growing production in the US and he expects a 3.2 TCF storage level there heading into winter, compared against 4.0 TCF historical rates. He thinks this could be a “five bagger” if natural gas prices pan out as he thinks back to $4.00 /mcf in the next 2-4 years.
(A Top Pick November 9/17 Up 5%) The stock is benefiting from the Ensign bid at $1.68, but thinks it will need a $2.00 price per share to make sense. He would like to see the company remain independent. They have a strong management team. The company is moving more rigs into the US under term contract agreements. He has a $3.00 per share 12 month target price.
How do you make money these days? It’s been very frustrating. Doesn’t own FANGs, but does own marijuana privately. We’re long in the cycle. Not a lot of breadth, which is usually a sign of the top, though the top comes when no one expects it. Interest rates still low, bonds don’t pay much, yet dividend payers are being sold wholesale. It’s FOMO. He can’t bring himself to hold or buy the big weed companies. He has a problem with the market cap. Can have a good company, but a bad stock. Hard for pot stocks to backfill the valuation. It’s a great industry, and Canada is breeding the frontrunners.
When will we get a real idea of cannabis market cap? Won’t see a lot of people take it up, if they don’t already use it, because people don’t want to smoke, period. People aren’t going to jump in just because it’s legal. Good long-term potential, but first we’ll need to see products that people are interested in.
He sees the pipeline sector under political attack, despite the need for expansions and Premier Notley doing the best she can with a bad hand of cards. This is a well-managed company with a good dividend. Any time it trades under $40 per share it is a buy. Yield 5.3%.