Athabasca Oil Corp T.ATH

Nuttall Details

[retiredcf]

First stock in the clip. GLTA

https://www.bnnbloomberg.ca/video/eric-nuttall-s-top-picks~2192589

Athabasca Oil (ATH TSX)

I recently purchased 9.9 per cent of the company directly from Equinor (formerly Statoil) when oil was ~$53 believing that we would see $60 by June (paid $0.18). Athabasca Oil offers unrivaled leverage to a rising oil price with free cashflow increasing by 10X with an oil price increase from $50 to $60.  At current oil prices and differentials Athabasca Oil trades at 2.3X EV/CF and a 31 per cent free cashflow yield. Given strong oil prices and accommodative high yield markets we are optimistic that Athabasca Oil will be successful in refinancing maturing debt in the next few months making it more “investable” to the masses. Our target multiple of 4x EV/CF would imply a $0.93 target at $60WTI and $1.91 target at $70WTI offering potential upside of 86 per cent to 282 per cent. There is risk in their refinancing so I do not consider this a “widows and orphans” stock.
 

TOP PICK

 

Athabasca Oil Sands Corp

(ATH-T)

April 30, 2021
 

No one is looking in the small cap where there are huge opportunities. Still see meaningful upside. $60 oil means their free cashflow goes up by 10x. At $60 oil, it would generate $144M of free cashflow. Leveraged to the oil price. 54% free cashflow yield and the name would trade at a 3x multiple. Could go to $0.90 share price. At $70 oil, could go above $1.00. Must refinance debt but expects positive outcomes. There is some risk. (Analysts’ price target is $0.47)
 

OIL/GAS

Eric Nuttall 

 

Price

$0.600

Owned

Yes

[Maxmoe]

Nice progression in his outlook and targets for Ath. Maybe next time he'll be bullish! LOL.

[Tartar3]

like to hear price targets >$80 Enable GingerCannot connect to Ginger Check your internet connection or reload the browserDisable in this text fieldRephraseRephrase current sentenceEdit in Ginger×

[CLOUDER]

WOW, nuttall is listend to again,  wow.

[retiredcf]

Say what you will about Nuttall, when energy stocks were in the toilet, he kept showing up and taking his lumps.  And the reason that people are now listening to him might have something to do with the fact that his fund is up over 70% this year. GLTA

[Chris007]

to be fair, I guess he kinda had to, seeing as running a long only energy mutual fund is his bread and butter (first at Sprott, then at Ninepoint)...to do that, I guess you gotta be kind of an oil permabull. That being said, credit where credit due, the man knows how to pick energy stocks in an up market.  That aside, I do recall him for a time running a small cap fund (non energy), or at

[Maxmoe]

Another way to look at this, and I'm pretty sure it's how Eric looks at this, is he manages a long only energy fund. He is paid to be fully invested, or close to it, all the time. If investors want to make less of a "bet" they can take money out but Eric's job is to always make the best RELATIVE bet he can. If he's a screaming bull like he has been the last year, he looks