Bonavista Energy Corp (BNP.TO)

When they cut the dividend, it brought the payout ratio closer to 100%. Doesn’t believe this company has hedged off their basis differential, which presents somewhat of a risk. Their assets in the basin are not terrible but are not the best. 6.5% dividend, for the time being, is not in jeopardy.

The track record of management is 1^st rate. Has a very gassy asset base and with the uncertainty about the prospect for natural gas liquids, this is a reason to be cautious on the story. He would like it at about $12. It has a 6% dividend yield, should be somewhat safe.

(Market Call Minute) Long term buy. Longer term outlook for Nat Gas is good. They have all been particularly punished.

(A Top Pick July 24/12. Down 10.02%.) Sold his holdings at about $14.31 when he thought the dividend might be further in jeopardy. Having a tough time getting his head around the new management.

Model price is $17.23, 22% upside. There is better value elsewhere. Weak hold. Would buy at $11.84. Not high enough to sell, or low enough to buy.

Always thought this was one of the better managed energy producers. At these levels, this is one he would be taking a serious look at. Excellent properties and good management. Financial situation is fairly good.

Have a very good inventory land base. With the improvement in natural gas prices, the stock has gone up. If gas prices stay above $3, the price is sustainable. Very attractive yield of over 5%.

The 3 names she owns in energy are Arc Resources (ARX-T), Bonavista (BNP-T) and Crescent Point Energy (CPG-T).

Thinks natural gas is going to build a base here of $4. On a macro basis, he sees a huge potential increase in demand from people wanting to supply gas for LNG purposes. He has a target of around $18. Good yield.

Bought more a few months ago, getting into more natural gas. Likes their new management and thinks he will do a good job.This stock is dependent on gas prices. So if they go up this stock will do well.

Gas and liquids producer. Has been a bit of a laggard relative to other natural gas producers so is trading at a discount.

One of the big companies that came out of the trust era and had a big fat juicy dividend attached to it. Figured out that their money was probably better spent by reinvesting their capital and ended up trimming their dividend and the stock reacted negatively. Spectacular assets.

(Market Call Minute) A core position for him.

The fundamental change that is taking place is the spread. Drillers are ceasing their activities so the supply of natural gas is drying up.

Used to be a good company but the problem is their exposure to natural gas. Cut their dividend more than once. When he gets assurance that gas prices are going to be going up, he’ll look at some gas stocks again. Gas prices have started to firm in the last week or so.