OTCPK:VREYD - Post by User
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retiredcfon Oct 17, 2020 7:04am
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Post# 31733785
Nuttall Details
Nuttall DetailsFirst stock in the clip. GLTA
https://www.bnnbloomberg.ca/video/eric-nuttall-s-top-picks~2057073
TOP PICKS
TORC OIL & GAS (TOG TSX)
A top pick for several shows now, TORC offers compelling valuation using strip pricing (which is unsustainably low) and very meaningful upside in a better oil price environment. At strip pricing of $43 WTI in 2021, TORC could generate free cash flow of $67 million equating to a 20 per cent free cash flow yield (that is, they could privatize themselves in five years at the current oil price). We think oil could rally to $50 WTI in late 2020/early 2021 and eventually $60 by year-end 2021, at which time TORC would be trading at a 37/64 per cent free cash flow yield. Given management’s reputation for delivering, adequate balance sheet strength and ability to weather the storm we see upside of 161/297 per cent upside using a five times multiple at $50/$60 WTI. Further, with CPP as a major shareholder we hope TORC is able to scale up in order to gain greater relevancy via M&A.
TOP PICK
Torc Oil & Gas Ltd (TOG-T)
October 16, 2020
Profoundly undervalued. At current oil price, it is trading at 19% free cashflow yield. They should reinstate their dividend which they cut. At $50-$60 oil, it trades at 2.1-2.9x and at 38%-63% free cashflow yield. CPP owns roughly 30% of the company. (Analysts’ price target is $2.48)
Eric Nuttall
Price
$1.580
Owned
Yes