Chinook Energy Inc (CKE.TO)

(Market Call Minute.)

This is a good way to play the small cap area through the bottom. They are not spending much at all this year. They are more of a gas play. Mostly in BC. They are in an area that is really doing well. M&A could happen at any time. It is a nice place to park money in this down turn.

Has been nibbling at this. Really likes this because it is sitting on $50 million in cash. It is in a nice sweet spot where Kelt Exploration (KEL-T) just acquired Artek Exploration (RTK-T) and Storm (SRX-X). They have some nice wells and some good land. Good management. This is a good place to park.

It is repositioning itself in Canada and there are some good assets in Canada. The management team has done it before. Give it some time and see how they do.

One of his favourite junior gas names. It represents pretty good value. It is cashed up, not a lot of debt. If drilling results come through there is a lot of upside potential.

Energy is positive coming up, but the chart on this one is not that appealing. It just broke through the 50 day a few days ago, and there has been significant underperformance against the market over the past month. There are signs that this one is trending lower.

Feels the market wants to see this company become less complex. Have some assets in Canada and some in Tunisia. Tunisia has always been a sore spot from the geopolitical risk standpoint. He hopes they can sell the Tunisian assets and bring the cash back to Canada and invest in some interesting plays. If that happens, he could see the share price at $2.50. If looking for a small cap gas stock, see Top Picks. (See Top Picks.)

Develops niche oil and gas opportunities in international hydrocarbon provinces. Explores globally. This one was in a negative trend and has clearly broken out. We are coming up to the period of seasonal strength. A volatile stock but it is showing outperformance against the market. Looks interesting.