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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

AGIO is a mid-sized pharma company with a long pipeline of projects continuing to advance towards commercialization -- including one for sickle cell.  It trades at 3x earnings, 1.2x book and supports a robust 60% ROE.  We like that cash reserves are growing, while product expenses increase.  We recommend setting a stop-loss at $24, looking to achieve $39 -- upside potential of 28%.  Yield 0%

(Analysts’ price target is $52.43)
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

SITC shares have been under pressure as shopping centres have fallen out of favour with many investors.  Now the valuation offers a robust 42% ROE, while trading 1.2x book and 1x earnings.  Cash reserves are prudently being used to aggressively retire debt and buy back shares.  The company is not paying a distribution presently, providing the company more flexibility and giving investors a tax-efficient investment vehicle.  We recommend setting a stop-loss at $10.50, looking to achieve $15.50 -- upside potential of 24%.  Yield 0%  

(Analysts’ price target is $15.38)
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Curated by Michael O'Reilly since 2020.
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TOP PICK
Stockchase Research Editor: Michael O'Reilly

Travelers are feeling US tariff concerns are easing with recent agreements with China and Europe -- boding well again for international travel.  The company trades at 7x earnings, 2x book and supports a ROE of 33%.  Cash reserves are still growing, while debt is aggressively retired.  We recommend setting a stop-loss at $54, looking to achieve $96 -- upside potential of 26%.  Yield 0%

(Analysts’ price target is $96.00)
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick May 01/25, Up 29.8%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with HUT has achieved its target at $24.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $10) to $15.  

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick May 01/25, Up 29.8%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with HUT has achieved its target at $24.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $10) to $15.  

COMMENT

Canadian inflation is down, partly because of the end of the carbon tax and low oil prices. What's driving the latter is ongoing global economic uncertainty due to Trump's tariffs. In Q1 oil demand was strong though that seems to be slowing down now. Couple that with increased output from OPEC+. If demand falls, what oil price will moderate US shale production? Natural gas: currently we're in a shoulder season, so volatile. However, there's been a meaningful increase in demand for LNG by the US (16% to 28% by 2030). LNG Canada should have its first export next month, which is positive and will shrink the Canadian discount in the nat gas price by nearly half. Power demand in the US will grow by 25%, so that is another driver. He expects nat gas to trade at $4-5 over the next year.

COMMENT
the impact of Trump's tariffs on Canadian energy

Canadian oil is fairly shielded from Trump's tariffs because tariffs would be massively inflationary for America. However, because of steel tariffs, it increases the cost of drilling for oil. American needs Canadian oil and natural gas.

BUY

A high-quality small-cap. They've had good success with water floods. They pay a sustainable 7% dividend yield. You're paid to wait. Overall, he's neutral to bearish on oil for 9 months. The market needs to absorb the OPEC supply. HWX is debt-free.

BUY

Is benefiting from weakness in American shale. The Oil Sands have been overlooked for a long while; the Oil Sands have supply unlike much of the world which is and will face oil supply shortages. ATH has no debt. They will have over 50 years of stay-flat inventory. Have low or no growth, but will buy back as much as stock free cash flow allows. There is a take-put premium in the current share price. At $70 oil, this will trade at 11% free cash flow yield. He sees $80 oil in a year or more, but not for the next 9 months at least. Great managers.

BUY

He had a massive position in Veren before WCP "stole" (bought) it. He was very excited about Veren's asset base. However, he is neutral oil now, so doesn't own WCP (prefers natural gas stocks). But he sees massive value in WCP. Are paid an 8.6% dividend yield, which is sustainable to low-$50s oil. Is upside here. Trades at 4x cash flow. At $70 oil, it will trade at a 5x multiple and shares will cost $14.

COMMENT

They received the second hostile bid in 10 years from the same company. He opposes this deal. The bid is laughable, massively undervalued. Unique, MEG has a super-quality single Oil Sands asset. Modest growth over time. They use all free cash flow to buy back stock. At $70 oil, MEG could buy back half their stock in the next 5 years. The asset quality of Strathcona (the bidder) isn't as good as MEG's. So, the deal would mean less liquidity, less quality, less inventory, though management of both are fine. MEG has a strong balance sheet and high inventory, so what is he getting from this deal? The fair value of MEG stock is much higher than now. He is a major shareholder of MEG.

WEAK BUY

He's a long-term natural gas bull; it's the fuel of the future, and LNG Canada is about to start. TOU has a good CEO and good inventory and pays a high dividend. That said, TOU is not his favourite nat gas stock though holds a lot of shares. TOU is more about dividends. TOU buys a lot of companies which creates an overhang and doesn't allow the share price to perform as well, so it lags its nat gas peers.

PARTIAL BUY

Is a low-risk, low-volatility, boring stock with limited upside, but pays an 8.8% dividend yield, which is why he has owned it in the past. The div is sustainable down to $50 oil. Their last quarter was good because their Permian assets are growing faster than expected. It trades at half the multiple as Prairie Sky and other peers.

PAST TOP PICK
(A Top Pick May 23/24, Down 48%)

It's down because of the fall in oil prices, pure and simple. He sold this around $4. The stock will excel if oil returns to $70+, but not at $60. He will revisit this at better oil prices later.

PAST TOP PICK
(A Top Pick May 23/24, Down 37%)

He sold this around $90. It's tied to the fall in oil prices as drilling activity slides. Shares are at a 28% free cash flow yield, but he isn't confident about that figure. Revisit this in maybe 6 months after the market absorbs OPEC oversupply.