Sweet 16 Update - Nov 4

[dan_s]

Each weekend I update the main Sweet 16 spreadsheet on the EPG website. It is usually updated by noon on Saturday.

The spreadsheet shows my current valuation for each stock and compares them to the current First Call Price Targets. Keep in mind that it takes at least a week after a company releases quarterly results before the results are reflected in the First Call price targets. BTW this is one of the advantages that you get by being an EPG member, you get an advance signal of which stocks might be getting Wall Street upgrades or downgrades.

These companies have been updated for Q3 results: AR, CXO, DVN, EOG, GPOR, NFX, PXD, RRC
Their individual forecast/valuation models are now on the EPG website. All you need to do is log on, click on the Sweet 16 tab and then click on the company's logo.

These companies are all reporting Q3 results early next week: CPE, CRZO, XEC, CLR, FANG, PE, PDCE, RSPP I will update all of their forecast/valuation models next week.

For the week ending November 3, 2017 the Sweet 16 moved up 4.6%, but the portfolio is still down 19.5% year-to-date.
All 16 companies are in much better shape today than they were at the beginning of the year, so I expect the portfolio to move into positive territory if commodity prices move higher. West Texas Intermediate (WTI) moved over $55/bbl on 11/3, the highest closing price in over two years. NGL prices have firmed up and natural gas is just one good cold wave from moving over $3.00/mcf. Commodity markets are MUCH TIGHTER than they were a year ago.

I am cracking the whip on our interns and my goal is to publish updated profiles on all 16 companies before Thanksgiving.

[dan_s]

Devon Energy Corp. (NYSE: DVN) was raised to Overweight from Equal Weight by Stephens on November 2. The firm’s $53 price target compared with a $39.08 prior close, but that was after a 5% gain. Shares closed at $39.27 on Friday.
Jefferies reiterated its Buy rating on Devon and also raised its target to $45 from $43.

My valuation is $54.00/share. Devon is generating a ton of free cash flow and deserves to trade at a high multiple.