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

To: Goose94 who wrote (91740)	11/20/2020 1:51:32 PM
From: Goose94	Read Replies (1) \| Respond to of 202433

TORC Oil & Gas (TOG-T) revisited 5.0 top pick from Eric Nuttall on BNN.ca Market Call Friday Nov 20th @ 1200ET A top pick for several shows now, TORC offers compelling valuation using strip pricing (which is unsustainably low) and very meaningful upside in a better oil price environment. At strip pricing of $43 WTI in 2021, TORC could generate free cash flow of $63 million equating to a 15 per cent free cash flow yield (they could privatize themselves in six years at the current oil price). We think oil could rally to $50 WTI in early 2021 and eventually $60 by year-end 2021 at which time TORC would be trading at a 29/50 per cent free cash flow yield. Given management’s reputation for delivering, adequate balance sheet strength and ability to weather the storm we see upside of 106/211 per cent using a 5 times multiple at $50/$60 WTI. Further, with CPP as a major shareholder we hope TORC is able to scale up in order to gain greater relevancy via M&A and as the commodity price improves, their ability to reintroduce a dividend should lead to a quick rerate.