Devon Energy Corp (DVN)

Oil is in a glut now, and you can't own a commodity stock when that commodity is in a glut.

The CEO will turn things around, but the free cash flow yield last year was 9% and below 3% this year. They need to fix that to attract share-buyers.

Devon is levered to the price of crude oil, which is why both are down.

Good time to buy with weakness in share price.
Very attractive increase in USA.
Producing record amounts of cash.
Good value investment for the long term.

Generates decent variable income. Cash yield next year should be 12% with $80 oil, 16% if oil is $100. It's fine, but if you're an oil bull the way he is, this name doesn't fit the thesis.

He doesn't like oil and expects it to go lower. He wishes he didn't own any.

They missed their quarter badly, and he doesn't expect the CEO to repeat that. Shares have fallen so low that you can step into this.

They missed a little on free cash flow, but dividend pays around 8%. Capex is inching higher and the street is watching this, wants more drilling. You don't buy an energy stock because you expect oil to surpass $100.

Natural gas prices are too low and will eventually rise.