Today, Eric Nuttall and Hap (Robert) Sneddon FCSI commented about whether TECK.B-T, FFH-T, IBB-Q, DOL-T, PXT-T, BCE-T, XLB-N, CNR-T, AD-T, MX-T, ING-N, LB-T, TV-T, RY-T, POU-T, CGX-T, ALA-T, AMZN-Q, BAM.A-T, WFG-T, CM-T, ABX-T, CJ-N, SHLE-T, TCW-T, BTE-T, MEG-T, PE-N, BTE-T, RRX-T, CR-T, GXE-T, GXO-T, TVE-T, BNP-T, CPG-T, TDG-T, CJ-T, SPE-T, ECA-T, CNQ-T, POU-T, STEP-T, ARX-T, ATH-T, VET-T are stocks to buy or sell.
At an $11 billion market cap, it is consider a mid-cap in the US. A Permian play producer, who can likely increase production by 20% per year for the next 7-10 years. It is inexpensive, when considering Midland Texas differentials are expected to narrow back in beginning next year. This could be an acquisition target in the future. Yield 0%. (Analysts’ price target is $41.44)
The merged Raging River/Baytex company, at $80 oil and a five times multiple over cash flow is a $10 stock. The Eagleford and Viking assets create cash flow as they delineate a prolific heavy oil play in Peace River and massive exposure into the East Duverney play. Yield 0%. (Analysts’ price target is $6.31)
(A Top Pick November 15/17 Down 46%) He exited energy services earlier this year. The E&Ps, he feels, are harbouring cash to survive, which has resulted in lower demand for the service sector. The company trades today at a trough PE and the company is paying down debt and buying back shares. He likes the management team strategy.
They have done some good acquisitions and they have heavy oil exposure, but the liquidity is just too slight.