ARC Resources Ltd T.ARX

Fox in the Hen House

[MyHoneyPot]

The Fox in the Hen House
 
Hi, I am Eric Nuttal from nine-point partners, Morning Star says I run the top energy fund in the world. My team of analysts have run the numbers on ARX and we feel the stock is highly undervalued, you should be trading at a 5X multiple at 27 dollars, what do you think is holding you back?
 
I would like to start coverage on your company but I must make sure we are aligned first. Let me stay this to get the conversation going, I don’t like Special Dividends, I can’t model them and if I leverage up with call options, I must convert do get the dividends, doesn’t work for me. I prefer that you commit to share buybacks.   
 
The stocks that I promote usually get more market exposure, and do better, and by the way you know I go on Market Call on a regular basis, maybe I could make you one of the top picks?  I also talk with Bloom Berg, I do pod casts, boy do I think I could help you guys, Wink Wink, (I am the top energy fund in the entire world.)
 
So, for me to start coverage on ARX, you got to commit to a NCIB and then my fund will buy a large block of stock in your company. However, I need a little time before the NCIB is in place to get positioned. With me promoting/recommending your stock in my fund, and you buying back shares we will get a better evaluation quickly. Thanks Eric you are standup guy, are you a supporter of the Wish Foundation. A guy like Eric does a lot of charity work, and Eric is here and he thinks management are topnotch guys, Eric, let me explain your position as a top tier Montney player and I will throw in a little support for your management team at the same time when I am on market call (The investors are being a little hard on you guys), your team has all the goods and just need a little professional global market exposure, by the worlds number one energy fund.
 
Eric, Ok ARX, I got my position in place and my traders will watch your trades, (what trading house are you using for that buy back again?), also what trading strategy will you be employing to execute on the buying back program, do you have a timeline for the deployment of capital, thanks for the info. Ok let me pass it on to the boys, they want to make sure your getting good value on your share buybacks, we have your back ARX management. Eric, I let you know what my boys see ARX management, we are partners and shareholders in your company, were here to partner with you as shareholders and help you. ( Absorbing the share appreciation the NICB will generate, he says under his breath)
 
Hi it Eric from ARX I am going to be on Market Call this week, management might want to know I am going to make you the number one pick. Got any updated info that you think I should communicate about your company; In case a caller asks? I just might use ARX as the example regarding my thesis regarding  the generational energy opportunity of a lifetime for investment in energy.
 
Hey ARC management, did you watch the show, did you see in real time the volume of trades and the quick appreciation in share price. Arx management I put a little plug in for you guys, you’re the type of guys I like to work with, thanks for the sponsorship my son’s team really liked those new hockey jerseys. You’re were the most mispriced stock in the world, we have made a lot of progress.
 
2 Week Later
 
Hey ARC management, you stock has appreciate 20%, do you recall how I said all the right things you told me to mention, on market call last 2 weeks ago? The boys told me the insiders sold a few shares of your own, good on you this has been a tuff journey.. Well guys, my job is done here, we have accomplished with the NCIB and my communication the goal of making the World aware of ARC your high value proposition your tremendous value for shareholders.
Nine Points is required to operate under stick ethical guidelines and policies, and the system and governance policies forced automatic trades out of our shares, totally out of my control based on your multiple, performance metrics, share count and CF, I can’t explain it better than that, but we have sold our position in your company.
1 month later
Next time on Market Call, well we made 37% on ARX stock it has seen significant appreciation. It no longer fits our criteria for a double and we no longer have a position. We feel there is better market opportunities out there for the deployment of our capital. These are good guys at ARX they bought my sons team hockey sweaters, they still are a good investment just don’t fit my criteria.
 
IMHO

[TimeBuilder]

SICK  !!!!!!!!!!!!

[Scotchlight1001]

Is this supposed to suggest Mr. Nuttal is the only fund manager on BNN that resorts to unethical means to improve their investment funds performance?

[MyHoneyPot]

Its the reality of what actually takes place, and that the share buybacks in really only help the funds that want to filp the shares are they are no here, for the life long shareholder the purchased their original ARX shares for the purposes of a meaningful dividend. Skip the share buybacks and just to a fund transfer to Nine Points, it might ultimately be cheaper in the long run.  ARX has

[clamlinguine]

Open your ears. Nuttal tells you he trades in and out. What the #$@# is wrong with people. 

[alvarez2]

You miss the whole point...............It's up to the investor to do his/her own homework and decide which sector they'd be best to position themselves in and spend the appropriate time doing their DD on the companies most well to take advantage of the upturn in the cycle. Eric Nuttal is very good at promoting the whole O&G industry and does a great job drawing attention to it. Maybe

[Zaphod]

great rant...too bad its total bs. Go to  ninepoint partners website review regulatory docs for the energy fund they list the top ten stocks they held a year ago and most are the same ..tamarack, enerplus, whitecap etc.. I'm also confused why you complain about anybody raising the value of a stock while openly admitting management's has been pathetic.

[alvarez2]

I'm not even sure why I bother reading his posts really..................entertainment more than anything else I guess. 

[Trapped]

Nothing he / William says makes sense. Sadly, repeating it 10 times per day doesn't help.