First stock in the clip. GLTA
https://www.bnnbloomberg.ca/video/teal-linde-s-top-picks~1961259 ENSIGN ENERGY SERVICES (ESI TSX)
Last purchased on April 8 at $0.58.
Calgary-based Ensign is a leading oil driller. For 2020, 80 per cent of its revenue is expected to come from the U.S. and international markets and therefore it has a lot less exposure to the struggling Canadian oil and gas industry. The company’s shareholder equity is $1.5 billion and its market cap is $85 million. It is trading at 6 per cent of its book value, or price-to-book of 0.06, which does not include intangible assets. The stock was trading at $2.50 in January, before the oil price crashed. Insiders were actively buying below 50 cents, including chairman Murray Edwards (who owns 20 per cent). The caveat is it has $1.6 billion in long-term debt.
TOP PICK
Ensign Resource Service Group (ESI-T)
May 19, 2020
There's been serious insider buying recently, something he always likes in stocks, $2 million worth. They do carry a lot of debt which concerns the market and is pressuring the stock. One third of operations are in drilling for natural gas, less than 20% is in troubled Canadian oil, and has operations in the U.S., Australia, Argentina, Iran and Kuwait. They have positive cash flow. ESI can hold their prices with more discipline than the rest of the oil/gas industry. (Analysts’ price target is $0.71)
Teal Linde
Price
$0.510
Owned
Yes