Q: Tenaz was a top pick this week on BNN Market Call and Bruce Campbell made some compelling argument. I see three past 5i responses to members questions spaced about a year apart that all seemed generally favourable with the small cap/commodity cyclicality risk noted. Since the last of those comments was about a year ago, can I ask for the annual update? (I note the stock popped about 5% at the time of broadcast). Thanks.
5i Research Answer:
Its small size, and the sector, add risks, but the valuation is quite attractive and the stock is showing good momentum (even before the broadcast). Insiders own 12% and have been net buyers this year. The balance sheet is strong and good cash flow/production growth is expected. Production rose 176% in the last quarter with a corresponding giant increase in cash flow. TNZ has also been buying back its own shares (though not at a huge level). All-in, for a small cap stock in the sector we agree that it looks good.