Q: Stock seems particularly weak compared to other Cdn. midcap oils. Any comments. Thanks.
5i Research Answer:
We are not sure why, here. The stock is very cheap on valuation, has a pristine balance sheet, and a decent last quarter. Oil and gas production did fall last quarter, but results still beat estimates, with EPS 10% better than expected. This may be simply boredom from investors. The company has not issued a press release in more than two months. The sector is not helping of course, but that is common to all in the sector. But at 6X earnings, with a growing dividend and strong balance sheet, we would be quite comfortable owning this.