Canelson Drilling (CDI.TO)

(A Top Pick April 3/17 Down 0.6%) This was taken over by AE Industrial on 09/12/17. The company was into electronics. He knew the company was looking to be taken out. It did not sell for much of a premium when it sold.

Very new fleet of drilling rigs. These rigs can very efficiently drill the kinds of wells they drill. The company is small and new and growing fast. Excellent balance sheet and exemplary management team. He really likes the company. 4.9% distribution -- mostly capital gains. 2 to 3 year timeframe.

Thinks this is the best operator out there. Has exposure in Saskatchewan, which he thinks is wise. Pays a dividend. Have 50 rigs or so. Rock solid balance sheet. The whole drilling space will tend to move well in an environment like we are in now. Feels we are fairly well advanced into a fairly decent, cyclical upturn in drilling companies. 2.9% dividend yield.

From a fundamental basis, it has a solid client base, and has a bunch of new efficient rigs. Deep driller, so a good utilization rate. It has gone up nicely to this consolidation point, and feels it is a good buying point. This would have an Exit at about $7.50.

(A Top Pick May 17/13. Up 50.58%.) Felt that people were pricing a lot of success into the sector so he got out of his position. Still likes the name. Very good operating company. Have much higher utilization rates than the rest of the drillers. 3% yield.

With natural gas over $4 and crude up around $90 or so, there will be more drilling so he would buy this one as a holding, but would buy Precision Drilling (PD-T) as a trading position.

This would be her favourite among the drillers because they have had the highest utilization rates in the drilling complex. Have a very new rig fleet. 4% dividend yield.

A very good company, but has exposure to heavy oil. If the keystone pipeline is approved it will help. He thinks it's a good company and that you can buy it here.

A small drilling company, with a very strong balance sheet. Have got horizontal drilling rigs, and if things turn up they will benefit. Efficient operators with high quality top performing rigs. Prefers the smaller guys as they fly under the radar, and have good relationships with the massive amounts of equipment. Could see $6 to $6.50 depending on what happens in the oil.

Cheap and lots of cash. New rigs exciting story.

(Market Call Minute.) Not a big bull on resources right now. Drillers are just a bit too pure a play. Would prefer Horizon North (HNL-T).

(Market Call Minute.) Good dividend. Good management.