Freehold: Downgrade To A Hold On Poor Outlook For Crude Oil
- Freehold Royalties' royalty business model offers superior returns and cost advantages, outperforming energy producers and ETFs.
- FRHLF's dividend yield is sustainable down to US$50/bbl WTI, supported by strong netbacks and low operating costs.
- Looking forward, crude oil appears to be entering a downcycle as prices recently broke down from a multiyear technical pattern.
- I downgraded Freehold to a Hold but expect it to outperform other energy equities during the anticipated downcycle in oil prices.
ugurhan
Freehold Royalties (TSX:FRU:CA) (OTCPK:FRHLF) has long been one of my preferred energy investments. I have personally owned Freehold shares for many years, as I firmly believe the royalty business model is vastly superior compared to
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