Successful Inv says buy EnCana 2014-06-09 18:38 ET - In the News
The Successful Investor, in its June, 2014, issue, says buy EnCana Corp., recently $26. On Dec. 3, 2009, old EnCana split into two new companies, EnCana Corp. and Cenovus Energy Inc. On Dec. 3, 2009, the first day of trading, we invested $1,000 in new EnCana at $28.81. The Investor then said buy six times from June, 2010, to December, 2013, at prices ranging from $20 to $33. Assuming an investment of $1,000 for each of the seven buys, the $7,000 position would now be worth $7,800. EnCana has agreed to acquire shale oil properties in the Eagle Ford area of southern Texas for $3.1-billion (U.S.). The company will partially finance this purchase with a separate sale of natural gas fields in eastern Texas for $530-million (U.S.). EnCana now has six core properties: Eagle Ford, Montney, Duvernay, the DJ basin, the San Juan basin and Tuscaloosa Marine shale. These areas contain large amounts of oil and natural gas liquids; this cuts the company's exposure to weak gas prices. The stock trades at a moderate 7.2 times the company's projected 2014 cash flow of $3.31 a share. Buy.
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