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To: Goose94 who wrote (39878)4/18/2018 6:11:06 PM
From: Goose94Read Replies (1) | Respond to of 203329
 
Husky Energy (HSE-T) new 52 week high, $19.85



To: Goose94 who wrote (39878)7/7/2018 3:48:15 AM
From: Goose94Read Replies (2) | Respond to of 203329
 
Husky Energy (HSE-T) top pick from Jason Mann on BNN.ca Market Call Friday July 6th @ 1200ET

We’re looking to add more energy exposure to the portfolios as we’ve seen a marked improvement in momentum. Although stocks look expensive on current cashflows, that should start improving materially in the next few quarters as higher prices flow in to earnings.

Husky is typically viewed as a pretty boring, low-growth integrated oil and gas company, but boring can be good in a cyclical business. They have a diversified production base across various geographies and types of energy, and a refining business that offers a natural hedge to heavy oil discounts. Its cheap on both an absolute basis and relative to other energy peers: it trades at 6.5 times enterprise value to earnings before interest tax depreciation and amortization (EV/EBITDA), versus its peers at 8 times EV/EBITDA. It's got a reasonable balance sheet and a modest dividend, but a low payout ratio of 10 per cent so it could go higher. Price momentum is good as well, and it's quite a stable stock.

Husky is targeting 8 times production growth through 2021, so it's not a growth story. That's likely why it's as hated as it is by analysts: only five "buys" out of 23 that cover the stock.