CNE

0
0

Considering the metrics on your growth screener I see no mention of CNE.
Can I have your thoughts on a 1/2 or full position.

Thank You
Gr8PaPa

PS Love the site

Marked as spam
Asked on February 15, 2021 5:48 pm
0 views
0
Private answer

Thank you for the reply. I guess your answer proves the value of a service like yours for the average retail investor who would not look this deep & hard at a stock. I would have never found this information on my own. I think I will pass on this one for now.

Gr8PaPa

Marked as spam
Posted by Craig Ogilvie
Answered on February 16, 2021 6:51 pm
0
Private answer

Hi there Gr8PaPa,

I think there is no mention of it, because it is still a stock that carries high risk as it is tied to the price of natural gas - which had been trading near decade lows. What you are seeing with the screener, is a pure mathematical output based on an algorithm that we created that ranks stocks for saftey, growth and value.

In CNE's case, the company is expected to grow earnings and revenue in a big way next year. This gives it cheap forward valuations. The question is - can it get there? As a 100% natural gas play operating in Columbia, it will be dependent on the price of natural gas which has been highly volatile. Likewise, while analysts estimates are attractive it is worth noting that it has missed in 7 of the last 10 quarters - something to keep in mind. It is also worth noting that a Columbia pureplay it does carry additional geopolitical risk - especially considering it is the largest producer in the country.

Next year, the company's production provide is expected to be flat at the mid range, but is looking to almost double production by 2024. If the company can execute and the price of natural gas can rebound, I can see considerable upside for the company. Once again, there is a certain level of risk here. Bulls have been calling for a rebound in natural gas prices for years. Despite a few blips on the radar, it has continued its downward trend. Will the recent spike be another blip? or a return to higher natural gas prices.

Overall, it is one that is worth a look if you want exposure to the industry.

Mat

Marked as spam
Posted by Mathieu Litalien
Answered on February 16, 2021 4:22 am