Baytex Energy Corp (BTE.TO)

(A Top Pick June 3/13. Up 26.57%.) Energy space has acted a lot more positively in the last 12 months than it did in the previous 24. They did a large acquisition in the Eagleford in March. Good management team. Dividend of over 5%.

If you like this stock, you shouldn’t be overly concerned about short-term price movements. Somewhat higher than it was a year ago, but not a great deal in contrast to some other midsize oil/gas companies.

Sold a $42 October Put for $1.10 and also bought a $48 Call for $.50. Thoughts on the strategy? The strategy was synthetic Long positions, basically selling a Put and buying a Call. If you look at the performance of those 2 instruments based on the performance of the underlying stock, it would look very similar.

(A Top Pick May 3/13. Up 19.83%.) Their acquisition of Aurora was an excellent move. This gives them a new diversified play from heavy oil into lighter oil and gives them access to the Louisiana Light Sweet market on the Gulf coast. This is accretive from a cash flow standpoint.

Heavy oil operator out of Canada with a little bit of light oil in North Dakota. Just did an accretive acquisition, Aurora, in the Eagleford in Texas. Likes the heavy oil exposure they have, but now they have the light in a key area in the US. Good dividend yield.

There is a chance of a better entry point so he would be a little patient. Tends to react in a volatile sort of way to price changes in energy.

(A Top Pick April 23/13. Up 26.48%.) Thinks there is still more upside. This was quite a disappointing stock from April until when they did the financing for the Eagleford transaction. Hopefully, shareholder approval will be on May 5. His target is close to the mid-$50.

(Market Call Minute) Heavy oil spread has tightened and the Canadian dollar has helped. There is US money flowing into these and it had a good move. He would continue to hold, but not buy more or sell.

A core holding. Benefits form an improving picture for heavy oil. A recent acquisition was accretive and allowed an increase in the dividend. Likes what they are doing and has confidence in the management. A solid 5 year plan for developing their resource base. An excellent track record.

Lightened his holdings because he thought that when the oil price passed $100, it was getting a little rich and as well, he wanted to reposition oil more to gas. If you think oil prices are going to be steady or higher, this is a good operating company.

They bought into an oil field and are not the operator. They just get sent a cheque. The deal was a huge success. It is a little rich, but a well managed company. He thinks you can own it, but there are other names he prefers, such as CPG. He is not a big fan of dividend energy stocks because they keep issuing equity to pay for acquisitions. They should plow profits back into the ground.

Great on execution. Made a great acquisition. Market is working through the value of it. Exposed to the differential with the US and should benefit from the XL pipeline and refineries coming online in the US.

Stock is starting to break out. Yield is nice, 6% and 5% growth rate in the yield over the next 3 years.

Have issued licenses so Canadians can export Canadian oil through US ports and he wants to see how this all plays out. If that does, we are in even better shape. The company has been running well for years. In the Seal area. Very predictable flat line. Heavy oil which they are great at extracting. Pays a good dividend.

Great dividend of around 5.5%. Mostly oil and liquids. Besides all the fundamentals which are in good shape and the wind at its back with the Cdn currency, it clearly has an excellent management team. Focused in Dakota, Saskatchewan and Alberta.