Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why Massif Capital is Bullish on Equinor (EQNR) Stock?

North Carolina-based asset management firm Massif Capital, LLC released its first-quarter investor letter this month – a copy of which is available for download here. The fund was co-founded and is currently being co-managed by Will Thomson and Chip Russell. In their recent letter to investors, Massif Capital announced that the core portfolio was up 3.1% in the first quarter.

In the said letter, Massif Capital highlighted a few stocks and Equinor Asa (NYSE:EQNR) is one of them. Equinor is engaged in oil and gas exploration and production activities. Year-to-date, EQNR stock lost 31.4% and on April 29th it had a closing price of $13.88. Its market cap is of $45.5 billion. Here is what Massif Capital said:

“Equinor (EQNX) serves as a strong ballast position with a large resource base, strong balance sheet, and the added benefit of an appealing dividend that will almost certainly be reconsidered by management, but is generally secure. Equnior is also driving its business towards a more sustainable and less carbon-intensive model. Equinor is developing and operating some of the lowest carbon-intensive oil reserves in the world. This signficantly reduces their risk of future stranded assets. Meeting the terms of the UN Paris Agreement would leave 29% of oil reserves stranded and eliminate roughly $360 billion in the value of the top 13 international oil companies by reserves. Equivalent to greater than 1/6th of their total enterprise value. We believe that EQNR has limited downside risk in this regard and will play an essential role in the evolving energy landscape as it burnishes its green credentials with interests in offshore wind.”

In Q4 2019, the number of bullish hedge fund positions on EQNR stock decreased by about 7% from the previous quarter (see the chart here).

Disclosure: None. This article is originally published at Insider Monkey.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.