Steven Tannibal

Oil prices will be higher for longer than the futures curve implies, and midcap oil and oil service names are pricing in 70-75 oil, creating an attractive entry point. The M&A market in oil services confirms valuations remain cautious, but the fundamental outlook supports higher prices, making midcap oil names a buy.

Tenet Healthcare is a reasonable value opportunity with a top-notch management team, and the credit markets would finance the entire market cap. Despite some volume issues, the valuation is credible and the stock offers attractive risk/reward.