RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Large secondary offering at 2.53I stay away from the microcaps.
I like leveraged oil names. BTE, MEG, CVE are all making obscene amounts of cash at these prices, but their stock prices are still a bargain. That said, BTE and MEG have a lot of leverage and if oil drops below $60, the stock price will fall. Leverage cuts both ways, but the upside torque if these prices sustain or go higher is substantial.
TVE is the best small producer and bargain-priced right now. It won't last at this price with a re-rate in the next few days or weeks. Their assets are some of the best in Canada.
HWX is a great growth stock. It looks heavy on the valuation front, but when the growth is considered into 2022, this will end up being a great price if oil prices hold above $60. They have no debt and are highly profitable at oil over $35 WTI. The clearwater is the best play in Canada. HWX is a darkhorse that no one is talking about too much yet.
WCP, CPG, CJ aren't as excitng. They have old, declining assets that require a fair amount of capex. They don't have any high ROI plays like the clearwater. Don't me wrong, they will appreciate if oil stays above $70, but not at the rate of some of the more exciting names out there.
ATH falls into the same category as BTE and MEG. High torque to rising oil prices. But I don't like microcaps and I don't think management is very strong. Lots of management first decisions rather than shareholder friendly moves.
Mtklip wrote:
ok, I think we agree, what's your upside target for TVE for 2021? Which small caps do you think are the best bets at this point. I have a position in YGR, hoping it'll play catch-up.