First stock in the clip. GLTA
https://www.bnnbloomberg.ca/video/eric-nuttall-s-top-picks~2136260
Tamarack Valley (TVE TSX)
Tamarack recently entered the most profitable oil play in Canada (Clearwater) via two consecutive acquisitions. This was a major turning point for the company as it eliminated worries about inventory depth, increased their market cap/investor relevance and with time will increase their oil weighting. Looking to 2022 we see their oil weighting increasing from 58 per cent to 68 per cent and as a result their margin/free cash flow increasing materially. Using $60WTI we see them trading at 1.9X 2022 EV/CF and a 32 per cent free cash flow yield (this means they could keep production flat while paying a 32 per cent dividend or buyback all of the shares outstanding within three years). Assigning a target multiple of 4X we see 125 per cent upside in the name.
PAST TOP PICK
Tamarack Valley Energy
(TVE-T)
February 9, 2021
(A Top Pick Feb 12/20, Down 4%) Also a top pick today. At $60 oil, he sees 38% free cash flow yield, $4.29 price target and 160% upside. They have a clean balance sheet, maybe they can do more tuck-in buys, and have several years of drilling inventory. TVE is the poster child of oil names left for dead but it offers big upside.
Eric Nuttall
Price
$1.850
Owned
Yes
TOP PICK
Tamarack Valley Energy
(TVE-T)
February 9, 2021
It's one of the cheapest energy stocks in the world. They just entered the Clearwater, the most profitable oil play in Canada. They'll generate gobs of free cash flow in 2022, enough to buy back all their shares using three years of cash. He sees well more than 100% upside. (Analysts’ price target is $2.09)
Eric Nuttall
Price
$1.850
Owned
Yes