Nuttall DetailsTwo links. One for a question and again for top picks (first stock in the clip). GLTA
https://www.bnnbloomberg.ca/video/eric-nuttall-s-top-picks~2251608
2https://www.bnnbloomberg.ca/video/eric-nuttall-discusses-tamarack-valley-energy~2251582
Theme is small cap stocks that can potentially DOUBLE despite having already doubled over the past year
Tamarack Valley (TVE TSX)
Market Cap: $1.04B
Tamarack has successfully pivoted from a company with a boring albeit profitable suite of assets to one with several years of running room in the hottest plays in Canada. Trading at 2.2x EV/’22 CF and a 31 per cent free cashflow yield we look to the company to announce an aggressive return of capital plan this September. Given such profound mispricing we hope the company will announce a five per cent base dividend along with a 10 per cent share buyback which would still leave $150MM of additional free cashflow with which to delever (debt/cashflow of < 0.5x) or add further to their inventory. A target multiple of 4.0x EV/CF equates to a $5.64 target price potentially returning 119 per cent from current levels.
TOP PICK
Tamarack Valley Energy
The largest holding in his fund. Trading at 2.1x enterprise to cashflow. 31% free cashflow. Have pivoted to the 2 hottest plays in Canada. Clearwater exposure should give them 4.5x multiple. The balance sheet is incredible and board and management are aligned for return of capital. Could initiate a 5% dividend and 10% share buy back with 100M free cash flow remaining. (Analysts’ price target is $4.25)
OIL / GAS
Eric Nuttall
$2.650
Owned
BUY
Tamarack Valley Energy(TVE-T)
29/07/2021
Profoundly mispriced energy stock. Has done a good job with pivoting into the two exciting plays, Clearwater and Charlie Lake. 31% free cashflow yield, which means they can privatize themselves in 3 years. Could easily pay a 5% dividend and buy back stocks with free cashflow left over. Biggest holding for him.
OIL / GAS
Eric Nuttall
$2.650
Owned