BUY
It has been ignored by the street. It is an 8.4% secure dividend yield. Equity is $16 a share.
WATCH
They have two plays. It is pressured because of debt load. Production came down in the third quarter and should now increase. They should knock debt down with the sale of two non-core assets next year. It needs a catalyst before the market will revisit this story.
PAST TOP PICK
(A Top Pick Dec 18/17, Down 63%) All the natural gas stocks have been suffering. All of these companies have debt loads and suffer at these prices. But storage is coming down rapidly. The next cold spell will drive gas prices up. Be bought stock last week. A year from now all three of these names should look really good. They have positive cash flow because they have firm hedges.
PAST TOP PICK
(A Top Pick Dec 18/17, Down 47%) A year from now all three of these names should look really good. They have positive cash flow because they have firm hedges. Be bought stock last week.
PAST TOP PICK
(A Top Pick Dec 18/17, Down 28%) It is ridiculously cheap. The balance sheet is very good. A year from now all three of these names should look really good. They have positive cash flow because they have firm hedges. Be bought stock last week.
DON'T BUY
He hoped they would merge with TDG.UN-T. He had TDG.UN-T on his action alert buy list. Now you have to decide what to do. PD-T is paying down debt but it is still high. The balance sheet is strained The stock price is now washed out enough that he is taking a little bit more positive view of this stock.
COMMENT
They are pursuing MEG energy but they are not that receptive. HSE-T stock has retreated. He thinks they will win this. They have refining capacity.
STRONG BUY
He likes it. The stock is quite cheap. It is on his action alert buy list. They have been buying back shares at $3. Now it is $1.16. It is being thrown out. He thinks it will benefit from the recovery. They now really have no debt. This stock could have a massive recovery in 2019 when the industry sees some daylight.
BUY
It is on his action alert buy list. It is mainly natural gas focused. 9% liquids. They are going to have a lift in production in 2019. The stock is pretty cheap. The balance sheet is 35% debt and he does not see that as a problem. It will start to do much better.
WATCH
They decided to cut the dividend until they see much better netbacks. The stock has been murdered. It’s on his watch list. It will require a lot of patience. They are in a bomb shelter right now.
DON'T BUY
They are bringing on more production, but don't have marketing and refinement. This and SU-T are the two large caps everyone runs to when they want to own energy. He thinks you need egress issues resolved before investing.
TOP PICK
They just made an acquisition to increase their volumes. Book value is twice their stock price. They have a decent balance sheet with a decent, sustainable dividend. (Analysts’ price target is $2.88)
TOP PICK
They had a 9.5% dividend yield last Friday. They never cut their dividend when the price went down. They have lots of production coming from Europe and Ireland. He thinks the market will be wrong on this one once again. (Analysts’ price target is $49.04)
TOP PICK
The dividend is safe. They have a strong balance sheet. They are still making lots of cash flow. The payout ratio is pretty low. (Analysts’ price target is $10.79)
COMMENT
The sell-off today (again): He doubts we'll see Santa Claus rally. It's been a brutal two months. Macro events are adding up: France, Brexit disaster for UK and EU, Italy; interest rates rising; the US-China trade war; and Trump's destabilizing tweets. The yield curve is flat, but keep an eye on the 2- and 10-year yields in the U.S. If they invert, then a recession could hit 6-18 months later. Many European buyers, especially Germans (where there are negative yields), are buying US t-bonds lower than their own bonds and get a 225-300-basis point yield. That depresses the yield. These leads to the yield inversion.