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

To: Goose94 who wrote (60985)	2/12/2020 8:11:05 PM
From: Goose94	Read Replies (1) \| Respond to of 202426

Tamarack Valley Energy (TVE-T) top pick from Eric Nuttall on BNN.ca Market Call Wed Feb 12th @ 1200ET A new position in the fund, Tamarack offers highly compelling valuation as well as material leverage to a rising oil price. With a bulletproof balance sheet (1.1 times debt to cash flow with the oil price at $50) and massive free cash flow (21 per cent free cash flow yield with oil at $60), we think the ongoing waterflooding success and potential exploration success could lead to a modest re-rating of the stock. Given that it is trading at only 2.4 times EV/CF at $60 WTI (3.3 times at $50WTI), a small inflow of capital downcap could lead to a material rise (a trading multiple from 2.4 to four times equals 212 per cent upside). We also think that if M&A were to pick up, Tamarack’s strong balance sheet could offer an attractive way for a more over-levered midcap to fix their balance sheet issue (and perhaps maintain an unsustainably high dividend).