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Clive Maund: Enterprise Might Just Pick Up Your Portfolio
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In the environment we are now in, the best thing investors can do is find stocks that are impervious to declines in the market indices. Even though they can be hard to find, there are some around, like the one in this story.

Source: Enterprise Group Inc.

In the environment we are now in the best thing investors can do is find stocks that are impervious to declines in the market indices. This is easier said than done, as most stocks are like sheep that move with the flock, but even though they can be hard to find, there are some around, like the Enterprise Group Inc. (E:TSX.V).

Whilst the statement “As the economy regains further strength…” on the company overview page of its website is, of course, laughable, the chart for the company’s stock is a picture of strength, and while we cannot entirely rule out that the picture will suddenly turn sour, the odds look very high that it will soon break out into another up-leg for reasons that are clear to see on its 1-year chart.

On the 1-year chart we can see that the stock has been trending steadily higher since September of last year and it is most encouraging to see that it was not at all adversely impacted by the plunge in the broad stock market indices of the past couple of weeks. Following a spike higher late in January and early in February, it has been consolidating in what can be classed as a bullish Ascending Triangle.

Action has been positive in recent weeks with an attempt to break higher in the middle of May followed by a small bull Flag forming that in recent days has led to it trying to break higher again.

This is the 4th attempt to take out the resistance at the CA$0.42 level and with the pressure off the broad market at least temporarily, it looks it is going to succeed in breaking out above this resistance imminently, and with the book value of the company currently at CA$0.71 a share, why shouldn’t it?

Chart courtesy of stockcharts.com

The long-term 12-year chart enables us to figure out what is driving the steady uptrend — the price is rising up out of the right side of a large Saucer base pattern.

It also enables us to see that there is a resistance level in the CA$0.60 area where the price turned tail and dropped after an aborted attempt to break out of a large Pan base that formed between 2015 and 2018. This time looks a lot different, mainly because of the strongly positive volume pattern and volume indicators, so it is considered highly unlikely that this promising pattern will abort.

I therefore rate Enterprise Group an immediate buy for all timeframes. Because of its strong chart and setup and because of its ability – up to now – to remain unaffected by selloffs in the market as a whole, it is considered to be worth going overweight on this one.

Other newsletter writers also see upside in Enterprise.

Gerard Adams at the National Inflation Association writes: "Canadian Oil Sands industry groups have combined this week into a new organization called Pathway Alliance that will focus on reducing GHGs. Because Canadian Oil Sands producers work in remote areas, they rely on diesel power generators, which are one of the primary causes of Canadian Oil Sands GHGs. Enterprise's wholly owned Evolution Power Systems is the only player in Canada that has retooled its fleet to low-emissions natural gas generators."

Adams adds: "Enterprise has no competition in supplying natural gas microgrid equipment to Pathway Alliance members. Most of Enterprise competitors went out of business during the oil industry downturn of previous years. Only Enterprise had the financial nimbleness to retool to the lowest emission equipment. Most of Enterprise's clients are now fueling their Evolution Power Systems low-emission microgrid equipment using their own natural gas produced on site that would otherwise go to waste. This eliminates the need for nonstop 24/7 truckloads of diesel fuel deliveries — further reducing greenhouse gas emissions and making the roads in Canada safer."

Adams predicts that Enterprise will go "much higher" and is a "steal" below its book value of CA$0.71 per share.

At The National Investor, Chris Temple has covered Enterprise for more than 10 years.

He writes: "Long before the U.S. energy industry was hit over the head with a 2” by 4” early last year, the Canadian oil and gas sector had been in the dumps for several years. Negative pricing had not prior been that much of an aberration at times where either heavy oil or excess natural gas production was concerned for many Canadian producers. A lot of them bit the dust over the last decade and many service providers along with them."

Temple adds: "For St. Albert, Alberta-based Enterprise... it was a tough road. Along the way this consolidator of equipment and entire businesses servicing the construction and energy industries had to do some serious consolidation of itself to weather the multi-year energy bear market in Canada. It has successfully done so. And now a leaner, somewhat retooled and refocused Enterprise Group is poised for a potentially dramatic comeback."

CliveMaund.com Disclosures

The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports.

As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

National Inflation Association Disclosures

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. This message is meant for informational and educational purposes only and does not provide investment advice.

Chris Temple Disclosures

Chris Temple is editor and publisher of The National Investor. He has had an over 40-year career now in the financial/investment industry. Temple is a sought-after guest on radio stations, podcasts, blogs and the like all across North America, as well as a sought-after speaker for organizations. His ability to help average investors unravel, understand and navigate today's markets is unparalleled, and his ability to uncover "off-the-radar" companies is likewise. His commentaries and some of his recommendations have appeared in Barron's, Forbes, CBS Marketwatch, Wall Street's Best Investments/The Cabot Group, Kitco.com, the Korelin Economics Report, Benzinga.com, Palisade Radio, Mining Stocks Education, Mining Stock Daily and other media.

The National Investor is published and is e-mailed to subscribers from [email protected] The Editor/Publisher, Christopher L. Temple may be personally addressed at this address, or at our physical address, which is: National Investor Publishing, P.O. Box 1257, Saint Augustine, FL 32085. The Internet web site can be accessed at https://nationalinvestor.com/. Subscription Rates: $275 for 1 year, $475 for two years for "full service" membership (twice-monthly newsletter, Special Reports and between-issues e-mail alerts and commentaries.) Trial Rate: $75 for a one-time, 3-month full-service trial. Current sample may be obtained upon request (for first-time inquirers ONLY.) The information contained herein is conscientiously compiled and is correct and accurate to the best of the Editor’s knowledge. Commentary, opinion, suggestions and recommendations are of a general nature that are collectively deemed to be of potential interest and value to readers/investors. Opinions that are expressed herein are subject to change without notice, though our best efforts will be made to convey such changed opinions to then-current paid subscribers. We take due care to properly represent and to transcribe accurately any quotes, attributions or comments of others. No opinions or recommendations can be guaranteed. The Editor may have positions in some securities discussed. Subscribers are encouraged to investigate any situation or recommendation further before investing. The Editor receives no undisclosed kickbacks, fees, commissions, gratuities, honoraria or other emoluments from any companies, brokers or vendors discussed herein in exchange for his recommendation of them. All rights reserved. Copying or redistributing this proprietary information by any means without prior written permission is prohibited. No Offers being made to sell securities: within the above context, we, in part, make suggestions to readers/investors regarding markets, sectors, stocks and other financial investments. These are to be deemed informational in purpose. None of the content of this newsletter is to be considered as an offer to sell or a solicitation of an offer to buy any security. Readers/investors should be aware that the securities, investments and/or strategies mentioned herein, if any, contain varying degrees of risk for loss of principal. Investors are advised to seek the counsel of a competent financial adviser or other professional for utilizing these or any other investment strategies or purchasing or selling any securities mentioned. Chris Temple is not registered with the United States Securities and Exchange Commission (the “SEC”): as a “broker-dealer” under the Exchange Act, as an “investment adviser” under the Investment Advisers Act of 1940, or in any other capacity. He is also not registered with any state securities commission or authority as a broker-dealer or investment advisor or in any other capacity.

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Copyright issues or unintentional/inadvertent infringement: In compiling information for this publication the Editor regularly uses, quotes or mentions research, graphics content or other material of others, whether supplied directly or indirectly. Additionally he makes use of the vast amount of such information available on the Internet or in the public domain. Proper care is exercised to not improperly use information protected by copyright, to use information without prior permission, to use information or work intended for a specific audience or to use others' information or work of a proprietary nature that was not intended to be already publicly disseminated. If you believe that your work has been used or copied in such a manner as to represent a copyright infringement, please notify the Editor at the contact information above so that the situation can be promptly addressed and resolved.


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Disclosures

1) Clive Maund: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.

3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Enterprise Group Inc., a company mentioned in this article.




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