Baytex Energy Corp (BTE.TO)

His model price is $51.72, a 15% upside. Has a dividend of $2.64 and it might earn $2.38, so they pay out everything that they have. If it could come back to $36, that would be his Buy level.

A very blue chip Canadian oil/gas. Likes it. Recently made an opportunistic approach to Aurora Oil & Gas (AEF-T) that owns a significant Eagleford oil and gas project, which is one of the best gas plays going in North America right now. Aurora had struggled for several years. This will be an accretive acquisition for them. A solid investment.

(A Top Pick April 10/13. Up 11.85%.) Just made a deal to acquire Aurora (AEF-T) and he thinks there was value there before this. Feels this is a transformative deal for them. He boosted his target price from $50 to $57.50. Sees their cash flow growing now at 13.5% for each of the next 2 years if the deal closes. Company will be a lot more diversified going from 75% heavy oil to 53%. Also, their production base almost rises by about 50%. Balance sheet was very clean before the deal. Not quite as clean now, but still very reasonable.

Company is executing very well, however we are at the top end of the range for the industry. Oil could dip below 90 second half of this year and then you could get in.

Recently added this to his positions. Very nice dividend that he believes is sustainable and will grow over time. A heavy oil provider and should benefit as the heavy oil differentials narrow in over the course of the next 5 years.

(Market Call Minute.) Large dividend payout by percentage. Heavy oil trying to buy Aurora (AEF-T) in order to diversify a little bit.

Energy group is showing some life. Old support became new resistance. Would like to see the old lid taken out. Buy on the breakout, not on the low.

Cream of the crop. Fantastic properties. A core holding for oil and gas parts of portfolios. Balance sheet superb. They beat on cash flow, production and earnings. Signed on to oil by rail first.

Owned in the past. The low cost production the oil business. Light oil is what you have a lot of in the US, but refiners refine heavy oil. BTE produces heavy oil. He has GXE.

(Top Pick Mar 4/13, Up 3.44% Total Return) Over a longer time, say 15 years, you see it compounded about 15% but it was less the last couple of years. With the acquisition it bought, it was brilliant because it was the end of the chain of the whole heavy oil story. They have diversified in markets, products and geographies making them poised to turn. A year from now you will see it being one of the top performers.

Roots in being predominantly a heavy oil producer but over the last few weeks they are moving out of purely heavy oil. They may not see the whole benefit of reduction in oil price spreads. A good company 3-5 years.

There is speculation that there could be another bid for Aurora. Assuming they close the deal it will be very good for BTE.

(Top Pick Feb 27/13, Down 5.59%) Has rebounded nicely. The deal seemed not to make a lot of sense but now it is starting to.

We are at the right time for energy and it is doing well, showing positive signs early. He would stay in this stock here. There is a little resistance but then some upside. We are just entering the beginning of the season for it, and will run until the end of May.

Just announced they are acquiring Aurora oil/gas assets for $2.6 billion. Historically investors have always liked this one for their heavy oil. This acquisition is a long-term benefit for the company in order to insulate and increase their dividend.