Market. Christmas Eve was the bottom for the energy sector. A massive amount of hedge funds where long oil and short natural gas. They were wrong on both calls. The FANG stocks were going down at the same time. He thinks it is not over and that there may be one more pull back in energy. There may be one more buying opportunity. He thinks WTI will get above $70 this year.
Natural gas producer. It is a top pick on his action alert buy list. You get a dividend yield. They are moving to add more liquids. They are talking about having more cash flow. They may add to their dividend or to stock buy backs.
About 8.7% yield. If the valuation backed off another dollar, it would be very attractive. At $28 it would be very attractive. (Analysts’ price target is $43.00)
If the price of oil goes to $70 and then 80 or 100, it is about worldwide events. Enbridge line three will probably be put on. Heavy oil has more of a problem than lighter grades of oil. Lighter grades of oil have more to do with the worldwide price of oil. We could see bills get stalled in government that are supposed to stall the egress of oil.
They walked away from MEG-T. The whole thing with takeaway capacity will continue to be a problem. Wait for some guidance. If we see pipe go in the ground we may see some acquisition activity take off.
Light oil companies will benefit more from an advance in oil price to $70+ this year. He is concerned, though about the balance sheet here and would pass on it. In a couple of years, all these stocks will go up, however. There are other bargains out there, especially natural gas picks.
(A Top Pick Jan 15/18, Down 35%) All these natural gas stocks have been beaten up. It bottomed last year. We have a big decline in the storage data last week. He thinks we will see it go up to $4. He would buy on weakness
(A Top Pick Jan 15/18, Down 71%) He would buy on weakness. They are hitting on a new play. It is one of the bargains of it. He would buy. The balance sheet is not an issue.
(A Top Pick Jan 15/18, Down 76%) Every 10 cents adds one point five million bucks. The market is worried about the balance sheet but it is very low in valuation. When these stocks take off, they really take off.
They are bringing on new wells. They are generating 30 cents in cash flow and trading at $0.38. The stock has been devastated because of debt. It is a junior name. It is a very cheap stock. It is on his action alert buy list.
The balance sheet is a bit of a problem but the management team has a way to grow this company going forward. It is a thermal player. He needs to see pipe going in the ground.
BBI-X is the old ticker. The merger involves a 10 for 1 split. PIPE-X shows a couple of weeks of trading and that is what to go by. They are coming on with new production facilities soon. By the end of the year, they will go to 10 times that. He thinks it is cheap and is on his action alert buy list.
BBI-X is the old ticker. The merger involves a 10 for 1 split. PIPE-X shows a couple of weeks of trading and that is what to go by. They are coming on with new production facilities soon. By the end of the year, they will go to 10 times that. He thinks it is cheap and is on his action alert buy list.