Swanzy Quarshie Bonterra Energy Corp BNE-T TOP PICK Sep 16, 2016

It looks like it is making a bit of a recovery. The downtrend has been broken and consolidation has been taken out. Not a bad looking profile.

A small exploration stock. It appears the drilling is becoming predictive. It is rare we see an exploration play attractively priced in Canada. He seldom recommends exploration stocks in Canada. This management team has been successful in the past in the same terrain they are exploring now. (Analysts’ target: $23.25). (One of our faithful viewers has pointed out that BNN may have misinterpreted Rick's choice, and these comments might have been intended for Bonterra Resources (BTR-X) instead. )

This has always been tricky, because it is fairly closely held, and trading liquidity is pretty crummy. It is typically Canadian dividend funds that buy it and hold it. They found themselves in a position where they had taken on too much debt, and made a mistake of not hedging it off. Have high quality assets. Due to its lack of liquidity, he has been trading at a pretty healthy premium to others.

This hasn’t acted well. It’s like a lot of energy stocks, but this is still down 50% for the year. Got caught with a little “worse than average” balance sheet, which has been a kiss of death in the stock market. With the combination of a really good balance sheet, very low costs and drilling prospects, you are still down, but not very much. It will take a while. It’s one of those companies that needs $60 oil to be better. If you think that is not going to happen, then he would switch to something else where you would be better protected.

She likes the company and the equipment. Debt levels are higher than what she is comfortable with. She is going to wait until they settle it down before putting them in their model portfolio.