Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (52303)	1/25/2019 8:22:26 PM
From: Goose94	Read Replies (1) \| Respond to of 203376

Baytex Energy (BTE-T) (revisited) top pick from Eric Nuttall on BNN.ca Market Call Friday Jan 25th @ 1200ET Baytex stock is reflective of the total lack of interest in Canadian midcap oil stocks, hence the extreme undervaluation and poor price action of late (barely up when oil is up, but gets crushed when oil falls). Despite 45 per cent of its cash flow coming from the Eagleford Basin and 35 per cent from the Viking light oil play, Baytex trades like a bankrupt heavy oil company with inferior assets when the very opposite is true. Trading at 3.5 times enterprise value to cash flow (EV/CF) at $60WTI, investors are roughly paying only for the value of existing production and thereby getting 11.5 years of remaining cash flow for free (from proven and probable reserves) as well as free exposure to their Duvernay light oil play in which they’ve derisked 30 out of 255 high-graded sections potentially worth $900 million. At $60 WTI and a five times enterprise value to earnings before interest, tax, depreciation and amortization (EV/EBITDA) multiple, we get a $3.93 target price (74 per cent upside). At $70WTI, we would get a $6.60 target price (194 per cent upside). This stock has decoupled from its fundamental reality.