5i Research comments today Model Portfolio Changes
Growth Model Portfolio
Increase Tamarack Valley Energy (TVE) Position to a 3.5% Weighting
Trade Rationale - Despite record cash piles and solid balance sheets, most energy names have struggled to see much in the way of share price appreciation. With the price of oil hovering around the low $70s, and very low valuations for energy names, we feel there is a decent risk/reward opportunity here. TVE is a strong oil and gas exploration name with a forward P/E of 3X. Profitability, free cash flow, and sales growth are strong, and we see upside potential in this name if the price of oil stabilizes or bounces higher.