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Strategies & Market Trends : Dino's Bar & Grill

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To: Goose94 who wrote (70952)1/17/2020 7:59:36 PM
From: Goose94Read Replies (1) of 202708
 
Whitecap Resources (WCP-T) top pick from Jason Mann on BNN.ca Market Call Friday Jan 17th @ 1200ET

Like most energy companies, Whitecap has had a rough few years. With a bit of a cyclical rotation underway and with commodity prices overall a bit more supportive, we’re turning more of our attention to some of the more “deep value” stocks in the market.

Whitecap scores well on valuation not just against other energy stocks, but the whole market. They pay a 6.4-per-cent yield which we believe is sustainable and a balance sheet that isn’t stretched. Price momentum is still struggling on a relative basis to non-energy stocks, but it’s improving like for some other Canadian energy companies.

Whitecap’s historically conservative management team hasn’t tried to spend their way to growth, but stayed focused on sustainable cash flow and moderate capital spending. This pick is definitely a call on oil and on value rotation, but one that we think is worth it.
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