AlexLMX All financial numbers in this article are in Canadian dollars unless noted otherwise. Please note that oil and gas prices are always in US dollars. Introduction Buy every oil dip you see! The quote above is from a hedge fund newsletter I read yesterday. While I always call for prudent financial management, I’m one…
bjdlzx Headwater Exploration (OTCPK:CDDRF) is a Clearwater (pure play) Canadian heavy oil producer (that reports in Canadian dollars). Management is expanding into other areas as the production grows. But the clear strategy is very profitable heavy oil production. The growth story appears to be improving as management raised the capital expenditures and the guidance for…
Energy Extraction On America’s Plains Ramon Cliff/iStock Editorial via Getty Images It is not too late to initiate a position in Plains GP Holdings, L.P. Class A (NASDAQ:PAGP), despite doubling the return of the S&P 500 over the past year. This large, high-quality MLP has produced a trailing 12-month total return over 40% compared to…
Isaac Lee/iStock Editorial via Getty Images Investment Thesis U-Haul’s (NYSE:UHAL) substantial rise due to the pandemic has stalled and reversed, but the company has continued the extraordinary spending in CapEx, resulting in a historical low of its free cash flow. With a weaker demand picture emerging and less room for other strategic spending, the company…
wolv Thesis CNX Resources Corporation (NYSE:CNX) has a unique strategy, one that emphasizes free cash flow, or FCF. The natural gas producer then allocates much of that FCF to share buybacks and reducing its debt. It’s been a successful strategy, one that has produced Energy sector-leading returns on equity, total capital, and assets, as well…
hapabapa Netflix (NASDAQ:NFLX) reports their financial results for their first calendar quarter of 2024, after the market closes on Thursday, April 18th, 2024. The 12/31/23 quarter was the big upside surprise as Netflix saw 13.2 million subscriber adds, vs. the 8.8 million expected, with 2.8 million coming from US and Canada, the slower-growing region. The…
onurdongel *All financial data in this article is expressed in Canadian dollars. Enerflex Ltd. (NYSE:EFXT) is a global energy infrastructure supplier who operates out of Canada and sells their products globally. Over the past couple of years, the company has been working on implementing cost synergy strategies related to its merger with Exterran Corporation. After…
Jacek_Sopotnicki Investment Thesis: Warner Bros. Discovery (WBD) is a media and entertainment business that operates primarily in the segments of Studios, Networks, and DTC. Some notable brands they own include DC, Game of Thrones, Harry Potter, and many more household names while some of the primary platforms they operate through are TNT Sports, Max, and…
Tim Boyle Reinventing brands is hard. Once consumers and market views of companies crystallize, management teams usually find the task of changing those perceptions difficult if not impossible. Brand equity is everything in the retail business, and when the appeal of a label diminishes, that usually marks the beginning of the end for most companies….
Hispanolistic Introduction I previously covered Ahold Delhaize (OTCQX:ADRNY) back in late 2021 where I argued that sustaining the robust operating margin would be key to bridging the valuation gap with US peers, with covered call selling an excellent way to position in the shares. Over the past year, European grocery retailers such as Ahold Delhaize…
bjdlzx Baytex Energy Corp. (NYSE:BTE) management reported a significant increase in cash flow compared to what it would have been had the company not acquired Ranger Oil (ROCC). The fourth quarter cash flow represented more than half of the cash flow for the fiscal year. This is now a light oil upstream company. The market…
zhengzaishuru Baytex Energy (NYSE:BTE) currently is projected to generate US$528 million in 2024 free cash flow at current strip prices. This is around US$138 million more than Baytex’s estimates from December 2023, as it benefits from improved oil strip prices. Baytex’s estimated value also benefits from an improvement in the assumed odds of it winning…
buzbuzzer/iStock via Getty Images Business Overview In my opinion, Rush Enterprises, Inc. (NASDAQ:RUSHA) doesn’t get enough praise or attention from investors. This is a business that has been around since the 60s, has been public since 1996 and over the last 20 or so years, the stock has had a CAGR of 15-20% depending on…
spooh Outline: Vermilion Energy Inc. (NYSE:VET) had a rollercoaster share price performance in the past years. First, they paid out high dividends over the years, but then they had to cut it as debt mounted. COVID-19 hit the company in the same way as it did to others – share prices crashed – then, share…
adamkaz Stem, Inc. (NYSE:STEM) faces a crunch in liquidity even as demand for utility-scale energy storage booms, with cash and equivalents at $114 million at the end of its fiscal 2023 fourth quarter. The direction of liquidity over the last three years does not make for a pretty view, with a perpetual dip since the…
loveguli Investment Thesis Alibaba Group Holding Limited (NYSE:BABA)(OTCPK:BABAF) was one of the most controversial stocks of 2021 and 2022. The fervour may have died down somewhat as certain dramatic scenarios that were suggested, e.g. being crushed by the Chinese government and delisted from U.S. stock exchanges, have not come to pass — and yet new…
PM Images Listen here or on the go via Apple Podcasts and Spotify Why Austin Hankwitz is focused on profitability and cash flow (0:20). Russell 2000 is weirdly undervalued (3:10). This is an abridged conversation from a recent Investing Experts podcast. Transcript Rena Sherbill: Austin Hankwitz, you host Rich Habits Podcast. Writer for Seeking Alpha….
Marvin Samuel Tolentino Pineda/iStock Editorial via Getty Images Introduction Sometimes the best investments are the ones that don’t need a lot of attention. I last discussed Coca-Cola Consolidated (NASDAQ:COKE) in February 2022 and rated it a ‘strong buy’. The share price has performed really well in the past two years as the stock is up…
Bloomberg/Bloomberg via Getty Images US investors have to dig and claw to find quality high-yield names. Goldman Sachs reports that the current dividend yield on the S&P 500 is a scant 1.45% as of late February 2024. It could be a sign that the market is getting pricey, though the beaten-down Energy sector trades at…
VanderWolf-Images Introduction I have been tracking Vopak (OTCPK:VOPKF) for several years now and in the summer of 2022 I thought the company had become too cheap and I liked the stock for its 5.5% dividend yield, which was pretty good for an infrastructure company back in the day. Since that article in August 2022, the…
BlackJack3D A huge global company making plastic resins and other chemicals, LyondellBasell Industries (NYSE:LYB) is a huge company operating internationally, and they are also operating an oil refinery in Houston, Texas. One of the world’s largest providers of Olefins and Polyfins, LyondellBasell offers products to different industries, and has steadily been expanding their business with…
CreativeNature_nl The only oil name Berkshire seems to love I haven’t delved into oil and gas names seriously for quite some time. I had been tricked in the past investing at the top of the cycle when Warren Buffett and Bill Gates both were buying Exxon (XOM) hand over fist. Oil was supposed to be…
agnormark It’s been a tough year for the Gold Miners Index (GDX), with the disappointing results of a few souring sentiment for the group, and continued share-price underperformance vs. the gold price. Some of the detractors with pitiful results and/or per share metrics (due to continued share dilution) have been Coeur Mining (CDE), First Majestic…
Dmytro Aksonov/E+ via Getty Images Investment Thesis Daktronics, Inc. (NASDAQ:DAKT) is interesting because the Company controls a dominant position in a market where they do business against industry titans like Samsung and LG. These companies have significantly more financial resources than Daktronics and a more recognizable brand name. There are multiple advantages that Daktronics has…
e-crow Introduction Last year presented a checkered landscape for the oilfield equipment and services industry, with the U.S. market experiencing notable weaknesses, contrasted by robustness in international and offshore sectors. Despite these challenges, NOV Inc. (NYSE:NOV) didn’t just hold its ground; it thrived, as its earnings were buoyed by solid international and offshore demand —…
sanfel Target Corporation (NYSE:TGT) is one of the largest and most successful retailers in the United States, with a market cap of $65.81 billion and annual revenue of nearly $110 billion. The company has been able to differentiate itself from its competitors by offering a wide range of products, from essentials to discretionary items, at…
aeduard While it was a mixed year operationally for the precious metals sector (GDX) with several companies missing on cost estimates like Jaguar Mining (OTCQX:JAGGF), IAMGOLD (IAG), and Hecla Mining (HL), New Gold (NYSE:NGD) has been one Tier-1 jurisdiction producer to exceed estimates, tracking to the high end of production guidance and the low end…
takasuu/iStock via Getty Images Antero Midstream (NYSE:AM), the transportation portion of natural gas (NG) producer, Antero Resources (AR), continues growing EBITDA with strong results. Is it enough to return the once higher dividend? And yes, cash flow is the primary, actually, the only commodity of importance for investors at this point. Midstream slashed its dividend…
The-Tor Vital Energy, Inc. (NYSE:VTLE) continues to make both large and small acquisitions to increase free cash flow. In the time I have followed this company, it has gone from an asset-based strategy (that few companies survive) while running cash flow deficits until there was a material sale, to a company with free cash flow….
shapecharge A Quick Take On SEI Investments SEI Investments Company (NASDAQ:SEIC) provides a range of wealth management, advisory and related services to institutions and individuals. Top line revenue growth has been quite low for SEI Investments Company, with stable profits and very strong free cash flow. However, due to the currently elevated market valuation of…
zhengzaishuru Antero Resources (NYSE:AR) generated slightly negative free cash flow (before changes in working capital) in Q3 2023. I didn’t consider that to be a problem at the time of its Q3 2023 earnings report since Antero’s capital efficiency was improving and the 2024 natural gas strip was around $3.50. This put Antero in a…
Editor’s note: Seeking Alpha is proud to welcome JX Research as a new contributor. It’s easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » wdstock Investment thesis I believe Build-A-Bear Workshop (NYSE:BBW) is…
Kokkai Ng/iStock Unreleased via Getty Images Coming off another solid beat and raise quarter, Southeast Asian consumer service ‘super app’ Grab Holdings (NASDAQ:GRAB) looks poised for a great year ahead. Having survived the steepest rate hike cycle in decades, Grab is now a leaner, meaner machine. And backed by a growing net cash position, management…
zhengzaishuru Baytex Energy’s (NYSE:BTE) Q3 2023 results were in line with expectations and it generated CAD$158 million (US$117 million) in free cash flow during the quarter. It also updated its Q4 2023 guidance (with no major surprises there) and I now project it to generate around CAD$325 million (US$241 million) in Q4 2023 free cash…
jetcityimage Macro and micro factors have been at play, driving some sharp outperformance and severe underperformance among the diversified Industrials sector of the S&P 500. One of the poorest stocks in that slice of the SPX is 3M Company (NYSE:MMM). The firm continues to face uncertainty with investigations and lawsuits, casting a significant shadow, critics…
franckreporter Investment brief Persistently high rates, sticky inflation, and a slowdown in construction rates aren’t the pillars of growth for the renewable energy sector. That in mind, it isn’t surprising that investors continue to forecast a period of difficult business for Ameresco (NYSE:AMRC) with its stock price nudging 52-week lows within the last month of…
sinseeho/iStock via Getty Images fuboTV Inc. (NYSE:FUBO) stock is down more than 95% from its highs of over $60 registered in 2021. This year, however, FUBO stock has gained almost 80% aided by the improving sentiment toward tech stocks. Last July, after a rigorous two-part analysis, I found fuboTV significantly undervalued and assigned FUBO a…
mgstudyo Stock Overview In my second research note lately covering a utilities sector stock, Duke Energy (NYSE:DUK) is next up in my crosshairs after its recent earnings release on November 2nd. A few interesting points about this North Carolina-based company: It has 8.2MM customers, its roots go back to 1900, and its name is tied…
onurdongel Shares of Gulfport Energy (NYSE:GPOR) have been a tremendous performer over the past year, rising by more than 50%. Its strong hedge book and high-quality asset base have helped to keep the company relatively immune from the decline in natural gas prices over the past year. However with shares having now rallied so much,…
Everyday better to do everything you love/iStock via Getty Images Paylocity is trading (NASDAQ:NASDAQ:PCTY) approximately 35% below its 52-week high and over 50% from an all-time high of $314. This is a high-growth high-quality company that is not only profitable but is demonstrating improving margins and efficiency. As the company matures, revenue growth is expected…
Justin Sullivan Investment Thesis Preview We initiated our overage on Williams-Sonoma (NYSE:WSM) in “Williams-Sonoma: Priced To Perfection” with a “hold” rating in January this year. The stock has been lower for the next eight months and only climbed up recently. It is currently about 17% above where it was in January. Our thesis was built…
Volodymyr Kalyniuk/iStock via Getty Images Introduction In my previous articles, I started to turn positive on dentalcorp (TSX:DNTL:CA) (OTCPK:DNTCF) as the cash flow results were improving and the M&A pace was slowing down. This would and should allow the company to reduce its gross debt and net debt levels and that would obviously have an…
grandriver Shares of Diamondback Energy (NASDAQ:FANG) have been a mixed performer over the past year, essentially treading water. The company does have premiere assets in the Permian Basin, which delivered strong results in Q3. For this reason, its name is bound to get speculation amidst the recent wave of energy M&A activity. With a pristine…
Wolterk The oil market is among the few that offers a general hedge against the most significant risks impacting stocks and bonds. In 2021, the sharp rise in oil and gas prices was a major contributing factor to inflation, hampering the profitability of some stocks and contributing significantly to the rise in interest rates. This…
HeliRy Frontline plc (NYSE:FRO) recently acquired 24 VLCCs (very large crude carriers) from Euronav (EURN) in a complex deal with Compagnie Maritime Belge that also buys Frontline’s 26% stake in Euronav at $18.43/share. CMB will then bid for the Euronav shares at the same price (a mandatory result from the stake sale). Frontline has said…
champc In the aftermath of the 2020 volatility spike, Flow Traders (OTCPK:FLTLF) was often hailed as insurance against declining markets. Over the last years, markets have not been declining but still volatility traded at, historically, elevated levels. This year volatility dropped and even though Flow has returned value in terms of dividend, the declining stock…
Alstom highlighted reasons for the free cash flow reduction for H1 of the fiscal year, and predicted a reduced figure for the full year. Shares in French train manufacturer Alstom crashed by more than 35% following a reduction in the company’s forecast for free cash flow. As of this writing, Alstom shares are selling at…
Magdalena Wygralak/iStock Editorial via Getty Images The prompt month of WTI just registered its best quarterly advance since Q1 2022. The 27% climb came as the US dollar rose sharply and interest rates around the world jumped. Multinational companies have their work cut out for them amid a shaky macro backdrop. Energy sector stocks, not…
tupungato Investment Thesis: Electronic Arts is seeing an impressive rebound with growth in net bookings and an improving cash flow position. In a previous article back in May, I made the argument that Electronic Arts (NASDAQ:EA) could see modest growth in the short to medium-term due to concerns over a slowdown in net booking growth….
Filmstax/iStock via Getty Images Co-authored by Treading Softly This past Mother’s Day, I splurged on a gift for my wife. My wife and I are both heavy coffee drinkers. We love the smell. We love the taste. We love the experience of having a good cup of coffee or espresso drink. So this past Mother’s…