Anthony Cammara

Anthony Cammara
Contributor since: 2012
Yeah, the article was written over the weekend but unfortunately they only published it today. Petrominerales obviously feels that the stock is way undervalued and is willing to buy back up to 10% of the existing float. Management obviously feels that this is great use of their excessive cashflows.
So now, it is returning you over 3% in dividend and it is decreasing potentially up to 10% of stock which should result in capital gains and an even better PE and cashflow multiples.
I agree in the near term there wont be much improment on CNQ's crude realizations, but that why you have to get in now. If you wait for realizations to improve before taking a position you'll miss the majority of the move.
Plus at current realization prices, CNQ is spinning off a ton of cash and is significantly undervalued. We're getting a good entry point here. I'm not saying take a full position, but now if a great time to start a postion and then add to it in the future.
The pipeline companies are, for all intensive purposes, a utility company. They out performed the last year as investors were starving for yield and safety. But the issue is now that companies like PPL are over valued and trading at a 28 P/E and it looks like investors risk appetites are coming back. And yes PPL still has a nice dividend of 5.5% but in a "risk on" environment, people will be moving their money from stocks like PPL and into more risky plays. Thus in my opinion, a stock like CNQ will out perform PPL.
Anthony says, if sleeping dog sleeps on 6.9 Billion barrel oil field, wake dog up, move dog out, collect profits.
Shell has a nice dividend but limited capital appreciation because its already so big. CNQ you could potential get a 50% move up plus accumulate a 1% dividend while your waiting. The big super majors (Exxon, Chevron, Shell, Total etc.) are starving for acquisitions to try and grow their reserve base. CNQ would be a big acquisition, but I can see a big name taking a run in the next couple of years.
The Natural Gas componant is one of the reasons I like the CNQ too. You know that Nat Gas prices are going to rebound in the future, and they'll be well positioned to take advantage of that, which will give the stock an extra lift. In the mean time they're diverting capex to their oil and liquid plays to maximize gains from rising oil prices. They are a very nimble company/
Well oil stocks are typically volatile, just like their underlying commodity. It's pretty much followed the overall market trend since May where the market started to drop, then bottomed in October and then started rising. It also has an exploration component, so when well results come out we either get a pop or a drop. But right now it's trading at 13x earnings and trading over $3 a share below its Net Asset value so it's not trading a premium or pricing in any exploration success. They have 10 exploration wells scheduled for this year, and with any success you'll see the stock trade up towards its net asset value and above.
haha, I love silver too. I love all the commodities. With the debasement of the currencies, all commodities will continue to move higher. We can't print more gold, silver, oil, copper, there's only a finite supply.
In the silver space i really like Scorpio Mining, it's on the TSX (TSE:SPM) but you can also get it on the pink sheets. Take a look
Another one that I like that's been beat up is a small cap name Lake Shore Gold (NYSEAMEX:LSG). They've had some production misses and the stock has been punished. Their assets are in Canada so there is no political risk, and their mines have shown better than expected grades and more resource. They also just inked a royalty deal with Franco Nevada (Franco-Nevada has paid to the Company US$35 million for a 2.25% net smelter return royalty on the sale of minerals from the Company's Timmins West Complex. In addition, Franco-Nevada has paid C$15 million to acquire 10,050,591 common shares of the Company on a private placement basis). They have 3 million ounces measured and indicated and another 3.9 million ounces of inferred. Once they get the production hick ups out of the way I can see them trading at double or triple where they are now.
The negative EPS was caused by an impairment charge on the Tasiast mine. They wrote down the value because they are delaying the project. This was the prized asset when they bought Red Back Mining. It looks promising since when they purchased it Tasiast has about 20 million ounces of gold and as of the last estimates it was over 27 million ounces. I talk more about this in one of my blog posts:
Kinross has one of the best growth pipelines in the gold industry, at these prices its a very tempting takeout target and there is tremendous upside.
Thanks, and I'm glad some of my past articles could help you out.
I do follow other energy companies. I have covered a few already on my blog