Q: Any thought on Tamarack Valley. Oil is hanging around $75-$80 yet its price keeps falling. My understanding is they have low cost and good producing properties.
5i Research Answer:
TVE has somewhat different goals than other energy companies in that it is less focused on dividends and buybacks, and more focused on reinvesting its dollars into future growth. It recently acquired Deltastream, and this is one of the few in the sector that is actually expected to see revenue and cash flow growth this year, even with lower commodity prices. The stock is cheap, and we think management is solid and the stock has upside potential. We feel that its low valuation and the benefits from its Delta acquisition will get noticed at some point.