Freehold Royalties Ltd T.FRU

Nuttall's Comments

[retiredcf]

Spoke to him again yesterday at the Toronto MoneyShow. He and his family also own FRU personally. GLTA

 

Freehold Royalties (FRU TSX)
 

Yielding 8.2 per cent sustainable down to $55 WTI and with 10-15 years of stay-flat inventory, Freehold is trading at the same multiple of a traditional E&P business despite having the advantages of being a royalty company. While a sleepy name lacking an immediate rerate catalyst, we think the potential for renewed growth on its U.S. acreage given two-thirds of its Permian acreage now lies with Exxon and Diamondback is being overlooked. With its close peers trading at twice the valuation, we think the stock is undervalued and should be benefitting like infrastructure and utility stocks by lowering interest rates.

TOP PICK
Freehold Royalties Ltd(FRU-T)
13/09/2024

Defensive name that he has a 10% position in (income fund). Royalty paying 8% yield to investors. Doesn't trade at same multiple as PrairieSky Royalty. Excellent acreage in the USA and Canada. Great long term investment.

Financial Services

Eric Nuttall
$13.430
Owned

 

[newcoin]

Great work!! I wish I could meet Eric, The King!!

[Westcoastenergy]

Great to hear! As you know from my previous posts, I have loaded up on FRU over the last 6 months or so as I am weaning myself off of employment income and into living off of dividend income!  Love the dividends from FRU, PEY and WCP.  Hoping that, eventually, ARX will significantly increase my dividend income...lol.