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TOP PICK
A major with great price momentum and still cheap valuation. Like many of the energy companies, it is trading at 6x EBITDA. 13x earnings. Hitting a number of metrics. Their latest deal is accretive for them immediately. A safer way to play a continuation in the energy bull market. Relatively early days he thinks. (Analysts’ price target is $63.02)
oil
gas
TOP PICK
Thematically likes copper. Should continue to do well. Has been sideways in the last 6 months following a run up. Demand is still strong. Relatively low supply. Cheap. BC based with Australian mines. 3.4x free cashflow, 3.5 EBITDA, 7.5x to earnings. High return on equity. Good balance sheet. (Analysts’ price target is $5.10)
Mining
PAST TOP PICK
(A Top Pick Nov 13/20, Up 166%) Would buy again. Like many energy companies, it is no more expensive than where they were a year ago. Energy prices and natural gas in particular has moved up. The improved cashflow is now used to right balance sheets, pay dividends and other shareholder friendly moves. Great price momentum with 5x EBITDA which is still reasonable.
oil
gas
COMMENT
The market was looking for an excuse to sell off. There has also been an underlying shift from growth to value happening. Hedge funds with over exposure to growth are now hurting and are now de-risking. The new variant is a cause of concern, but also we will need to live with them now. A healthy sell off to get off some fluff.
SHORT
Price momentum has not been great. Valuation has gotten a little cheaper. Still in the middle of the pack. Good return on equity with 20x price to earnings. Fair amount of debt. 18x EBITDA. Struggled in some ways. Buying companies and stripping out cost does not always result in the best customer experience. Need to show that they are able to perform.
food services
