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

To: Goose94 who wrote (97050)	2/22/2021 2:10:45 PM
From: Goose94	Read Replies (1) \| Respond to of 203031

Parex Resources (PXT-T) new 52 week high, $22.41

To: Goose94 who wrote (97050)	3/27/2021 1:56:16 AM
From: Goose94	Read Replies (1) \| Respond to of 203031

Parex Resources (PXT-T) top pick from Eric Nuttall on BNN.ca Market Call Friday Mar 27th @ 1200ET Parex is a profoundly mispriced Colombian oil producer. Parex trades at a meagre 2.4X EV/CF at $65 Brent and a 28 per cent free cash flow yield. With a net cash position of ~$460MM (17 per cent of their market cap) their biggest problem is to figure out what to do with all of their free cash flow. Given valuation investors are getting free optionality on further exploration success, a positive surprise on a new asset/core area entry, or potentially their being acquired by a more indebted company seeking to deleverage given Parex’s pristine balance sheet. We think fair value is 5X 2022 cashflow which at $65 Brent (roughly $60WTI) = $36.00/share = 72 per cent potential upside.