Why institutions are now buying at level of $13 after the ERFinally, finally, finally ---here is a company that under-promises and over-performs. Institutional investors are picking up. Double volume on Friday Nov 05 after ER announcement. Return of fund managers to deprecated oil sector. Thanks to Climate action call no new investment is even possible now. Oil prices will cross $120. Management MUST now STOP HEDGING at ridiculous $50 level .
Institutions are buying heavily at $13 level for following reason. Poised to at go up to at least $26 in less than two years with 5% dividend yield at this price. What more?
I picked this one at $10.80.
(All values in Canadian $)
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Read on (Ref- Eric Nuttall's Top Picks: November 5, 2021, Bloomberg
Arc Resources (ARX TSX)
ARC is a rock-solid company offering super high quality, long life resource at a material and unwarranted discount. Trading at 2.5x EV/CF at US$70 WTI and a 25 per cent free cashflow yield, the company has committed to returning meaningful capital back to shareholders. We think fair value is closer to a 5x multiple triangulating to a 13 per cent target free cashflow yield offering 96 per cent potential upside.
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