WAIT
Likely she will purchase soon. They have some land in Colorado. They do not have a lot of Canadian assets and are somewhat insulated by the lower Canadian pricing. Should have tremendous free cash flow in the coming years. They have very little debt.
WAIT
We have been in a gas bear market for 4 years. This space has been decimated. It is a medium oil producer in Alberta. They continue to grow but have too much debt. They should be fine when prices recover.
WAIT
In the long term, they have incredible assets and management and will be very successful. In the short term, they are looking at selling some assets because of high debt loads.
BUY
This was her biggest win up until the last few weeks. Wonderful fundamentals. They are working on adding more inventory. Last quarter was their best quarter. She would recommend buying it now. However, may be a few quarters before see stock price appreciation.
COMMENT
1. Crude Oil Outlook: She does not see the renewable energy side taking charge for another 20-30 years. There has not been a lot of traction for non fossil fuel businesses. Weaning off fossil fuels is important but until there is a way to fix it, Canada has to continue producing fossil fuel energy.
DON'T BUY
For full disclosure, she is on the Board of Directors of Blackpearl. International Petroleum has made an offer to acquire. It is expected to close in mid December. She would not be buying a stock that may only be around for a few weeks. Management is very strong and will be going to International Petroleum.
TOP PICK
Are a gas and condensate company. Just had their best quarter. They had fantastic growth. Now they are looking at measured growth and cost controls. She purchased it about 3 months ago and is a big fan for the long term. Yield = 0% (Analysts’ price target is $22.35)
TOP PICK
They are light oil. They are well balanced and have a small dividend and are promising to increase their dividend yield. They are long term thinkers. Yield = 5.5% (Analysts’ price target is $9.78)
TOP PICK
They buy opportunistically in down cycles. They are gas. Their debt levels are under control. They have built a nice solid company over the years, and may sell the company in the coming years if the time is right. Yield = 0% (Analysts’ price target is $10.95)
COMMENT
The markets have entered negative territory because the Wall of Worry has broken down with fears over the US-China trade war, FANG stock weakness and rising interest rates. He's not worried about Apple; growth rates can't continue, because the iPhone is near saturation. Geopolitical concerns weigh on sinking oil prices. He believes that the overall market is seeing a temporary correction, because economies are doing well and unemployment remains low. He doesn't see anything to be really fearful of. Corporate profits will decrease next year, but remain strong. Stocks are the place to still be.
DON'T BUY
It's a wonderful story. The stock is very pricey, though growth rates are impressive. They have innovative marketing. But can the demand for winter coats in Canada continue for them? He'd prefer a company with a global customer base.
HOLD
Years ago, it was well-managed and a great growth stock. They made purchase after purchase. But then, the retail bankruptcies started. NWL took on a lot of debt to acquire one company, Jardin. Then, activist shareholders stepped in. They sold off a lot of business, including their dominant skiwear business. Rubbermaid remains the company's core, which is good. He's long this in the short term. $40 is the target in two years.
BUY
The leading ETF company. So, if ETFs are being sold off (like now), that will pressure BLK. Hence, if the market turns around, so will BLK. Well-managed.
BUY
A great growth company. You're buying the stock on very high earnings, 40-50x. If you own this, you will grow with it, but expect a lot of volatility, and it can pull back as much as 50%. He can't say whether now is a bottom, but in 3-5 years you'll be happy to own this.
COMMENT
Breaking news: the CEO is stepping down It looks like a regular transition. They just completed the Ft. Hills oil sands deal, so it's likely a good, calm time to change CEOs before things get busier.