Cardinal Energy Ltd (Alberta) T.CJ

Nutbar's take on CJ on BNN

[Kherson]

I have listened to Eric's comments on Cardinal a few times today and it simply does not make any sense!
Here is the basic transcript from StockChase:
Outspending free cashflow, using debt to finance dividend, not his preference. Gets concerning if oil price drops. Not sustainable for the next year and a half. In 2026, the cadence of capex reduces and the dividend becomes sustainable. Yield is 10.1%.

Look elsewhere. You may sacrifice 2% on the dividend, but you're getting one that's much more sustainable.

So tell me, knowing Nutall's investment record and what he has done in the past and what he is doing today, why would Cardinal not be a screaming buy at today's prices? We all know what CJ is spending their capital on Reford, which will be a home run in only 18 months!
Kherson

[Quintessential1]

Yeah and he should be very aware that the dividend is, if not sustainable, at least covered by the newly expanded credit facility and given the Q2 results and the debt reduction looking more like sustainable.  He should also be ware of this..   "Gets concerinng if the oil price drops"  - Weird statement for an oil perma-bull. Slight of hand / misdirection - bashing

[loopsbutterfly]

yeah just mitigate the risk with covered calls and you can easily double your monthly income I did extemely well on that play I have 63 500 shares gracias    grinnnn..

[ARealityCheck]

Nuttall generally pans companies that he is interested in building positions in. Obviously this would be a great position for his income fund, and with his support, this company's stock price would appreciate substantially, but he can only build his position slowly so he doesn't tip off the market! Imho

[Coopsvw92]

He owned it briefly way back.  I guess he only likes growth through issuing paper like baytex.

[JohnnyDoe]

Nuttall has never really liked CJ  He's also not wrong. If oil drops to say 60 for any length of time, CJ is overextended and vulnerable to a dividend cut. There's a risk there and it's more than he can stomach. If you have the appetite for the risk, the stock could appreciate substantially in 2026 if wti holds 75+ between now and then

[Singoa58]

Nutbar picks  are generally losers 

[lnggasfor202324]

It seems like erverytime Nutbar puts out his top picks he reduces or sells them next time he comes on.  It seem like more of a pumper and dumper.