Today, Eric Nuttall commented about whether ERF-T, CPG-T, BTE-T, PEY-T, PXT-T, TVE-T, CNQ-T, ATH-T, BTE-T, MEG-T, PE-N, ARX-T, BNP-T, SU-T, VET-T, WCP-T, CR-T, ECA-T, CFW-T are stocks to buy or sell.
He won't buy any service stocks today. It just isn't profitable; the market isn't rewarding drilling. Stop drilling and buy stocks, is his message to the oil industry. He'd rather buy Trican who are buying back stock.
The bulls say you get international diversification and a high dividend and a good CEO. The bears argue the dividend is understating their maintenance capital, so maybe the dividend isn't sustainable and the CEO is overpaid as the stock struggles. Their maintenance capex is a little high. VET trades at a premium to the sector due to their dividend, which is sustainable. He wouldn't buy it now. He'd prefer WCP, because it has a lower valuation and has good cash flow.
US oil stocks He holds 80% Canadian oil and 20% American, and those are two American stocks: Parsley and WPX-N. Good assets, better than peers. If you want American oil, but not Exxon Mobile, looks at these two.
(A Top Pick Jul 20/18, Down 58%) A small-cap oil stock, but nobody is buying small-cap oil. They are the most levered to a rising oil price or a compressing WCS oil price differential. Their outlook is good, but the market isn't buying. He sold this and bought Cenovus and Whitecap Resources.
or Suncor Neither. CNQ is a great company and doing good things on the ESG front and advocating for the oil industry. This and Suncor are the two biggest oil names in Canada. CNQ keeps promising free cash flow, but keeps deferring that flow. He'd rather buy Cenovus which is poised to receive large-cap investment inflows.