RE:Nuttall bnn tomorrow Yeah Nuttal talks book regardless of the oil narrative. Spoke of $60 oil and FCF yet then choses stocks that are 40%+ NG like ERF with 66% of production hedged or capped at $54. He more or less admitted those names with leveraged to oil @$60 would be heavy oil plays like Cardinal which he wants to buy but can't find an institutional trade(cross) to get a substantial position. He is overweight ERF which has been a laggard because management failed to transact using the balance sheet at the bottom that institutional investors were expecting. I didn't turn out like WCP did reaching 52-week highs already. If you believe in $60++ oil you don't want names that are hedged (capped below $55) unless your view is oil will pull back. Higher oil weighted heavy oil names torque above $60 like Cardinal , GXE, MEG, ATH et al. Or high weighted light oil names such as BTE, CPG, WCP & BNE. You pick your poison based on debt levels as higher debt has higher risk but also higher torque.
Nuttal knows this and goes on BNN to speak of a one-year time frame top picks yet he is just a trader peeling off his overweighted names to unsuspecting retail investors to move into some of the names above. If he gets a pop in the stock all the better. He has not been relevant for years but when Elvis left the energy building decimating the patch this sector lacks analysts, insight and good sources of information as fund managers abandoned ship over the past 7 years. Today we see his picks respond because he is one of the few energy fund managers left and with this sector hot again people suddenly take note. ERF did eventually transact and hedges will roll but with Biden in office the buy Canada oil assets trade might have legs in 2021 as Biden bashes the US oil sector further.