Canadian Blue-chip Industrial Forum - Market Call - Canadian Blue-chip Industrial Forum - InvestorVillage
Canadian Blue-chip Industrial Forum
This is a semi-private group. You are free to browse messages, but you must be a member of this group to post messages. Join This Group

Group: Canadian Blue-chip Industrial Forum   /  Message Board  /  Read Message


Rec'd By
Authored By
Minimum Recs
Previous Message  Next Message   Post Message   Post a Reply return to message boardtop of board
Msg  68182 of 68419  at  9/18/2020 7:18:19 PM  by


Market Call

September 18, 2020

Eric Nuttall's Top Picks: TORC, Whitecap and Freehold

BNN Bloomberg


Oil has seemingly found a near-term floor around $40 per barrel, while demand normalization continues and the inventory surplus begins to more rapidly draw down. While consensus varies wildly on the pace of eventual inventory/demand normalization, we see encouraging trends as traffic congestion in major cities around the world has reached pre-COVID levels, people switch from mass transit to driving and certain areas within aviation, like Chinese domestic flying, are only down 10 per cent. We expect demand to reach 100 million barrels per day again by late 2021, and with U.S. shale declines continuing, global offshore production stagnating/falling and OPEC sitting on limited spare capacity (adjusted for currently curtailed volumes), the outlook for oil over the medium- and long-term remains very strong. We think we will see $50 WTI in early 2021 and $60 WTI in the second half of 2021. With that backdrop, energy stocks remain extremely inexpensive trading at 15 to 40 per cent free cash flow yields at $50 WTI and 20 to 100 per cent free cash flow yields at $60 WTI. We see the best opportunities within Canada due to increasing takeaway capacity, lower financial leverage, foreign exchange benefits, and a greater ability to generate free cash flow due to lower corporate decline rates.



Programming note: COVID-19

BNN Bloomberg

BNN Bloomberg’s COVID-19 Impact coverage now begins at 8 a.m. ET and runs until Market Call, which begins at 12 p.m. ET. Coverage resumes after the conclusion of Bloomberg Markets at 3 p.m. ET. Berman’s Call has returned to 11 a.m. ET Mondays, while Market Call Tonight remains on hiatus.

BNN Bloomberg's Home Economics

Sign up for BNN Bloomberg's weekly newsletter, Home Economics, which aims to help Canadians navigate their personal finances in the age of social distancing and beyond. Have it delivered to your inbox every Friday by subscribing at

Essential Links

TSX Market Movers
TSX Venture Market Movers
Previous Market Call Episodes
Berman's Call
More BNN Bloomberg Video
Guest Schedule


     e-mail to a friend      printer-friendly     add to library      
| More
Recs: 2     Views: 67
Previous Message  Next Message   Post Message   Post a Reply return to message boardtop of board

Financial Market Data provided by