Bonavista Energy Corp (BNP.TO)

Likes the company and has bought its most recently at $16.50. In the gas space and looking out 2-3 years he thinks gas will be quite a bit better than it is today. Looking at the chart, it indicates the 10% dividend will get cut. Tends to think the stock will rebound once the question of the dividend is out of the way.

We’ve had a fairly warm winter so far and gas injections have not been as high as would have been liked. Also, the whole market is looking at some fairly significant tax loss selling. He is looking at shifting into this stock. There is some concern about the payout but the company is well managed. You won’t see the dividend cut by 100%, maybe 30%-40%.

Very attractive yield at over 9%. Market was fearful they would have to cut the distribution because of natural gas prices. Management realizes the importance of the distribution. Issued some equity and sold some non-core assets and cutting back some of their growth CapX in order to protect the distribution. Thinks natural gas prices have probably seen their lows and will slowly increase over the next couple of years.

(Market Call Minute) No catalyst, stuck in the middle and no respect.

Not one of the best. Second-tier. It could continue to go down. 9% yield. Doesn’t know that it is in any danger and is probably safe. Very high yields are suggestive of vulnerability.

(Market Call Minute.) A bit to overweight in gas.

Company has good properties but there are a few issues with it. Balance sheet is pretty stretched, which will limit their ability to acquire other companies as they have in the past. If gas prices go up, and they are able to hedge they might not have to cut the dividend but there is not a lot of wiggle room.

This is a stock pattern that is not very favourable. Had a favourable run in 2010 but is now in reverse. 200 day moving average is still above the price but is coming down. The only good thing he can say is that there is some potential of base building.

(A Top Pick Nov 8/11. Down 34.47%.) They are drilling on natural gas liquids prone areas or light oil. 77% of their current locations are natural gas liquids prospects or light oil. Next year, 66% of their drills will be in those areas. Feels the dividend is secure. Has a $24 price target. Presumes the yield will go down to about 6%.

It was $26 earlier this year but collapsed with natural gas prices and fears the dividend would be cut. Management has said this is not going to happen. They will cut back on Cap X, sell assets and increase their DRIP so he feels the dividend is safe. Has a target of $24 on the assumption that the 8% plus yield goes to 6%.

One of the best run companies in the oil patch. Superb management. Cash flow is covering dividend but there is not a whole lot left over. It is not currently in jeopardy, but if Nat Gas prices pulled back again that could change. They pulled back Cap-X to projects with shorter term payback. Feels the company will survive. Could be an attractive purchase in this area.

A good company but he prefers some others.

(Market Call Minute) Better Nat. gas names in short term.

(Market Call Minute) Has the ability to swing from gas to oil and is in the process of doing so.

There were worries about its dividend but they did an equity financing recently and he thinks that is going to ensure that the dividend is safe. Dividend will not grow unless natural gas prices go up a whole lot. Pretty decent entry point for this one.