ECA, Encana update

eca july 24 2015

A few years ago we had a tentative target of $9 for this stock. We are surprised that it is getting there, after all this was one of the darlings in the energy space. The count is virtually unchanged from what we had back then and we would expect a bottom somewhere between $10 and $5. The line connecting the lows, which can be quite a bit off over this length of time and with this level of resolution, runs at around $7 which , in our opinion, is hopefully going to stop the decline. In any event you would be buying low compared to the previous 7 or so years.