Eric Nuttall is a portfolio manager at Sprott Asset Management. His focus is on oil and gas stocks.
Top Picks:
Continental Resources
With a well inventory surpassing 20 years, CLR aims to more than double production over the next 4 years in one of the most economic shale plays in the U.S.
Surge Energy
A new CEO has injected new life into the name. Surge stands to benefit from the record amount of assets for sale and will be able to backfill their valuation and build a sustainable dividend paying model.
Crescent Point Energy
Yielding 7.7 per cent, CPG offers both a healthy income and exposure to 5-per-cent to 7-per-cent per share production growth for the foreseeable future.
Past Picks: July 16, 2012
Legacy Oil and Gas
Then: $5.40
Now: $5.01
Total return: -7.22 per cent
Whitecap Resources
Then: $6.24
Now: $10.22
Total return: +68.08 per cent
Athabasca Oil
Then: $12.03
Now: $6.61
Total return: -45.05 per cent
Total return average: +5.27 per cent
Market outlook:
The energy sector remains in a funk due to fund flows despite cheap valuations and improving fundamentals. Several catalysts over the coming quarters should improve sentiment and lead to healthy returns for many stocks being painted with a doomsday brush.