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Today, Eric Nuttall commented about whether TOG-T, WCP-T, FRU-T, KEL-T, CPG-T, NVA-T, MEG-T, NRGY-U, VRML-Q, CNQ-T, ARX-T, ATH-T, CJ-T, WLL-N, TVE-T, YGR-T, SGY-T are stocks to buy or sell.

COMMENT
We're on the cusp of a new bull market for oil? Once we emerge from the Covid destruction, we'll exit this year about 4% below prior conditions. It's all about supply. The last 5 years have revolved around US shale. But due to shutting of external sources of funding and investor apathy, shale companies are aiming to grow at most 5% a year. The world relies on US shale, so the future is very different from the past. Saudi remains with a budget deficit on the price of oil. We can get back to $60 oil next year.
Unknown
COMMENT
The biggest opportunities are in Canadian small and mid cap names? Going forward, investors don't want growth of capital. They want dividends and share buybacks. Low debt levels and low corporate decline rates let them do this. Canada shines in this area. Already seeing capital flow back to Canada. Conditions in a few months will be tighter. His fund is 100% invested in Canada right now.
Unknown
DON'T BUY
Surge Energy Inc
Right now, you want to focus on oil over gas, and in the small to mid cap space. He's always struggled with owning this. Highly leveraged. There are better opportunities. It's going to be a laggard. For now, you want to be in name brand companies.
oil / gas
DON'T BUY
Yangarra Resources
Liked their ability to buy back shares from free cash flow. But then management decided to chase growth, so he divested. Decent gas exposure. Its recovery is still too low to attract investor interest. Better names to own.
0
BUY
It remains a top holding for him. The company is cheaply valued relative to asset quality and balance sheet strength. He thinks it's too cheap to last and the sector will probably consolidate. He expects it to be acquired at a meaningful premium.
oil / gas
DON'T BUY
Whiting Petroleum
They recently declared bankruptcy. There is no equity value remaining in this company.
Energy
DON'T BUY
Cardinal Energy Ltd
A small cap, medium heavy producer. Because they own older fields, operating costs are higher. Banks cut their lines by 30%. There is free cashflow and there is liquidity. However, he would look elsewhere.
oil / gas
WATCH
They pushed their debt to come to term in 2022. An ultra-high torque and leverage stock. If there is an oil shortage and oil price rises to $60, it can be a great play.
oil / gas
BUY
Arc Resources Ltd
He just bought some more this morning. Because of the sell-off, you can buy stocks that have a potential to double. You get natural gas and liquid gas. The quality of assets, balance sheet strength and free cashflow is good.
oil / gas
WEAK BUY
There was a fear that Q2 results were going to be bad. In his opinion, Q2 is irrelevant. Outlook for next year is positive. He thinks there are better opportunities but it is a good name too.
oil / gas
DON'T BUY
Vermillion Inc
He wouldn't own this name. There are too many assets globally and it is over leveraged. It's hard to maintain focus and cost controls globally. He would prefer a more focused company.
Healthcare
BUY
Ninepoint Energy
He is bullish on oil. There are 11 names in the fund, focusing on generating outsized returns. Average name has 40% free cashflow at $60 oil.
Energy
PAST TOP PICK
MEG Energy Corp
(A Top Pick Aug 30/19, Down 21%) He sees a supply shortage in global oil. The call on oil is only going to grow. They have 60+ years of reserves, and they are ready to go down in the Gulf Coast. Free cash generation is positive.
oil / gas
PAST TOP PICK
Nuvista Energy Ltd

(A Top Pick Aug 30/19, Down 58%) It's been lagging in the past months. He has been adding to it. They have drilled high quality wells in the property they acquired from Cenovus. There is a good potential to increase free cashflow in the next couple years.

oil / gas
PAST TOP PICK
(A Top Pick Aug 30/19, Down 43%) The oil fundamentals are stronger now than the start of the year. Looking at the multiple compression that happened in the sector, he expects the value of the stock to double once the macro environment normalizes.
oil / gas