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

To: Goose94 who wrote (78941)	8/6/2020 2:29:50 PM
From: Goose94	Read Replies (2) \| Respond to of 202704

Freehold Royalties (FRU-T) top pick from on BNN.ca Market Call Thirst-day Aug 6th @ 1200ET Freehold has sold off as much as most regular E&P’s (-48 per cent YTD) despite having a much lower-risk business model (96 per cent of production is from royalties and D/CF of only 1 times at $50WTI). Trading at a free cash flow yield of 21 / 26 per cent (pre dividend) at $50 / $60 , Freehold is positioned to meaningfully increase its dividend in the near future. With a targeted payout ratio of 60 - 80 per cent and only a 21 / 17 per cent payout ratio at $50 / $60 we look for the dividend to be doubled or tripled while retaining excess FCF to purchase additional royalty interests and reverse its modestly declining production profile. A target 9 times multiple = $7 - $9/share (85 - 129 per cent upside) at $50 / $60 translating to a reasonable targeted 11 per cent free cash flow yield. Given its own distressed valuation we do not rule out shareholder activism in the name.