Stocks - The Best Buys 2

[DoubleK]

Originally Posted by Azure

https://twitter.com/user/status/1489336446678749187



Ouch.

works now

[bluejays]

I personally don't like Facebook's leadership group as those guys have no scruples about doing anything. But I do believe the metaverse is going to be an escape for many more and more, and I guess the question really comes down to, is Facebook going to be the company to dominate or will it be another player. Facebook seems to be the frontrunner to do it, but any of the giants can possibly do it too, with the large chunks of money they have. I also have reservations about privacy becoming more important and facebook being the targets of more public pressure to police this stuff.


But with these huge drops there is going to be a lot of money made on trades on the volatility. Not my thing to trade, but some are going to make a killing.

[moncton golden flames]

What are your thoughts on PYPL right now, oversold?

[zamler]

Buy stocks in companies you believe it long term. If you're short term trading then use "casino money" expect to lose it. I'm using two trading accounts one for my long term plays the other as the roulette wheel.

PayPal does look over sold, and it's been 2 years since it was hovering around $120. On the flip side the stock didn't do much for a very long time it could enter that state again.

VWAGY (Volkswagen) is the most meh stock I've ever seen it barely moves.

[burn_this_city]

WCS is 5 cents off $100 CAD per barrel. Energy names still trading at a fairly significant discount from the last time we were seeing these prices.

[GGG]

Originally Posted by burn_this_city

WCS is 5 cents off $100 CAD per barrel. Energy names still trading at a fairly significant discount from the last time we were seeing these prices.

I think You have to value oil companies on cash flow now rather than growth potential. So I would expect lower valuations for a given oil price than previously were achieved.

[burn_this_city]

Originally Posted by GGG

I think You have to value oil companies on cash flow now rather than growth potential. So I would expect lower valuations for a given oil price than previously were achieved.

Basing them on cashflow multiples shows some are trading at 2x cashflow vs the 5-6 historical norm.

[Leondros]

Originally Posted by burn_this_city

Basing them on cashflow multiples shows some are trading at 2x cashflow vs the 5-6 historical norm.

Lots of companies are trading 2 - 3x EBITDA/EV which is mind boggling - these companies can buy their whole capital structure every 2 - 3 years... The multiples are crazy.

Eric Nuttal had an interesting tweet early this week that said if we are truly back into bull territory (which we are), companies are going to start being valued on a discounted 2P basis once again. Its fairly certain the oil and has industry is here to stay for atleast another 10 - 15 years. They should be valued as such. The disconnect between the two is on average 200 - 300% returns...

[#-3]

Originally Posted by burn_this_city

WCS is 5 cents off $100 CAD per barrel. Energy names still trading at a fairly significant discount from the last time we were seeing these prices.

People are going to price in a bigger and bigger risk discount on fossil fuel related stocks more every year. It's almost a self fulfilling prophecy, the more people discount it, the more people predict future discounts.

[GGG]

Originally Posted by #-3

People are going to price in a bigger and bigger risk discount on fossil fuel related stocks more every year. It's almost a self fulfilling prophecy, the more people discount it, the more people predict future discounts.

Dividends or buybacks should eventually be really attractive as this fear is priced in.

[dino7c]

So what are the best Oil buys right now?

[Suave]

Originally Posted by dino7c

So what are the best Oil buys right now?

This is a couple of months late, as best time to buy was in the summer. Right now some stocks are at all time highs or past their 52 week highs.

Suncor hasn't had as large of a run up as the rest. They have had lots of operational issues, so if they can get that behind them then the stock has lots of upside. If pricing stays high (like above $60bbl) then Baytex and Crescent Point will be undervalued. They were beaten down due to large amounts of debt, with high prices they wont have issues paying it down, getting their balance sheets in order and then reinstating/raising dividends.

O&G service stocks haven't had a large of a run either. During "boom" times they see their profit margins grow the most. Lots have no debt, so they will be cash flow machines with increased activity. Look at Trican and High Artic.

[Leondros]

Originally Posted by dino7c

So what are the best Oil buys right now?

Suncor is lagging as mentioned above. Athabasa has the potential for some high torque.

https://twitter.com/ericnuttall/stat...824963082?s=21

Take a look at the following chart. Given its 3P I would say the $50 WTI case adjusts it down back to a 1P level. Ie. Any stock at the 50 WTI price that is trading below that is a good place to start.

[rain_e]

Originally Posted by dino7c

So what are the best Oil buys right now?

As mentioned already take a look at Suncor. It has definitely lagged due to the operational issues last quarter. You buy Suncor now and it's paying a 4.5% dividend which is higher then the other majors. Impressive cash flows in the last quarters results. I like being paid while I wait for the capital gains.

At this point all of them have had some good runs so it's a matter if you believe in these companies. My main holdings are SU, CVE, ARX. One was for the dividend and the other two I think will have some solid runs still.

[Table 5]

Originally Posted by Leondros

Suncor is lagging as mentioned above. Athabasa has the potential for some high torque.

FYI, I believe Nuttall recently sold out of ATH, and so have a few others I follow. It's been a multi-bagger for me as well, although sadly a small position.

It's been a great run for oil the last year, so I don't think anyone would be surprised to see it cool off before it continues up. Personally, I'm shifting profits into the Oil Services ETF (OIH), and a basket of offshore companies (CGG.PA, VAL, TDW, RIG, FTI, MRM.AX) as those haven't moved much yet.

[rain_e]

Originally Posted by rain_e

As mentioned already take a look at Suncor. It has definitely lagged due to the operational issues last quarter. You buy Suncor now and it's paying a 4.5% dividend which is higher then the other majors. Impressive cash flows in the last quarters results. I like being paid while I wait for the capital gains.

At this point all of them have had some good runs so it's a matter if you believe in these companies. My main holdings are SU, CVE, ARX. One was for the dividend and the other two I think will have some solid runs still.

ARX earnings out today after close and they look excellent. I think I may sell some SU and move more into ARX. I like SU's dividend compared to ARX but ARX looks like it has more potential in gains.

[DoubleK]

I wish I had ARX.

Am fully weighted in TVE, WCP and GXE. I could probably hold my nose and say WCP is house money and doesn't count towards my sector weighting.

[burn_this_city]

WCS over $80USD today, $102CAD.

[Leondros]

Brent ripping the last 10 minutes on the Ukraine news

[Iggy_12]

So do any of the stocks talked about in here such as ADN, CBDT and NNDM have any chance of bouncing back? Depressing watching these plummet every day