CONNACHER OIL AND GAS LIMITED (CLC-T)

Has been down at the bottom for quite a while. If you want to throw some money at it, and risk losing it all, this would be a pretty good place to do it. This is very, very risky. He could just never stomach the debt load. Be wary, this could be a loser.

The principal problem is the debt and they are poorly capitalized. Also, price of oil has come under considerable pressure. They are developing long-lived assets, which mean there is really not much probability of bringing forward their cash flows into the here and now.

(Market Call Minute) Absolute disaster building oil sands facility with debt.

A very, very complex situation which he tends to avoid. This is one that could skyrocket or could possibly go bankrupt at some point. When there is not enough clarity, he tends to stay away.

A tremendous amount of debt. Company has to tiptoe through some very difficult spots. Costs are very, very high in relation to others.

(Market Call Minute) Buy the bonds if you are going to play it. If they skate through you will get a great lift.

If you own, he would be tempted to liquidate your holdings at the earliest opportunity. Has no idea why the stock price has gone up. Believes they still have over $800 million in debt.

(Market Call Minute) Highly speculative, up on more take-over rumors.

(Market Call Minute.) There’s a very strong possibility this company hits the wall in 2014.

Has been very negative on this name. Thematically they have incurred a ton of debt to develop oil sands and when you are the marginal cost barrel in the oil sands and financing it with debt, it is a risky business and it didn’t work out for them. Have gone through a process of management change, selling assets, etc. Still have a lot of challenges ahead.

Yesterday’s story. Victim of very poor operations and a turnover of their CEO twice over and the victim of extraordinarily high debt (debt to cash flow of 9 to 10 times). Probably zero value in the equity. Scale of operations is so small it is likely not a strategic buy for any company.

(Market Call Minute.) Absolutely stay away from this. Essentially bankrupt.

Has been a bit of a disaster over the last couple of years. A lot of debt on the balance sheet. About a year ago management had alluded that they may be acquired but that didn’t happen. At this point in time, he wouldn’t be averaging down. With the amount of debt, there is a possibility the company may have to file for bankruptcy over the next year or so.

Looks a little miserable. One of the tiny oil sands companies and is suffering on the pressures on the oil sands. Doesn’t have the strength, size and vitality. Had heard they have been selling their oil at $38, an extraordinarily low price. There was a change in top management. If you own, consider selling.

There is nothing optimistic to look forward to on this. There has been talk about them being a takeover but he just doesn’t see their oil sands or conventional assets as being that attractive.