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Strategies & Market Trends : Dino's Bar & Grill

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To: Goose94 who wrote (58715)5/10/2019 8:02:16 PM
From: Goose94Read Replies (1) of 202167
 
Enerplus (ERF-T) top pick from Jason Mann on BNN.ca Market Call Friday May 10th @ 1200ET

Enerplus is an energy producer with assets in both Canada and the U.S. It scores in the top 1 per cent of all stocks for us on valuation. It has a strong balance sheet, with net debt of about 10 per cent enterprise value. It has a smallish yield of 1 per cent, but has ample room to increase it.

Price momentum has been tougher, which is true for the sector overall, but we think an inflection point is coming. Energy is starting to outperform on a relative basis and momentum scores are turning up. There are a ton of money managers who have given up on the sector, and will chase to catch any real rally.

Enerplus has one of the lowest sustaining break-evens and one of the best cash flow yields among its peers. They have less torque to a recovery in energy prices, so the stock will lag a major rebound in energy. The difference is you won’t go broke holding Enerplus while you wait for a recovery to materialize.
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