Canadian Natural Rsrcs (CNQ.TO)

(Market Call Minute.) Feels this is the best looking one of the seniors and he just made a purchase today. Numbers will be improving going forward.

Thinks this will continue to do well if the sector generally recovers. The whole Keystone pipeline uncertainty has cast a pall over the whole industry, especially the oil sands.

This one has an enormous base. Resource stocks have somewhat of a seasonal period to move over the summer but this ends fairly shortly. The chart shows higher lows with a lid at around $33-$34. This could be called a bit of an ascending triangle and you want to see a breakout. If that were to happen, it would be extremely bullish. As a trader, you could Buy at the lower end of the trend line and possibly traded out at the resistance level of around $33.

Valuations are compelling right now. They are probably going to grow longer term. 3-5 years. It’s at a support level.

Which is your favourite large Canadian heavy oil producer? His favourite is Canadian Natural Resources because he thinks it is at the top of the Americans’ “Buy List”. The excess cash flow they are going to generate over the next 10 years is equal to the current Enterprise Value. He is bullish on heavy oil. He feels that Keystone will get approved.

Sold her holdings last year because of her concerns on the widening differential of Canadian crude versus WTI. This company was very vulnerable to the price differential. Differential has now narrowed somewhat. Before re-entering this stock, she would want more clarity on how they were going to move their crude from Canada into the US.

This is one of the companies that has been more conservative on their payouts to their investors. Have a huge resource potential. Catalyst for them is heavy oil pricing improving, which is why it has been weak over the last 1.5-2 years. If there is some positive news on Keystone, his view is that all heavy oil producer stocks will be up in mid-single digits. Doesn’t own it because of the lower dividend payout. Yield of 1.65%. (See Top Picks.)

Diversified globally with assets in West Africa, UK North Sea as well as in the oil sands in Canada. They have natural gas exposure. Continues to chug along nicely. Sees prices closer to the $40’s.

There is no CEO. Doesn’t concern him. He has owned this in the past.

(Market Call Minute) Bullish on heavy oil. Coming off 28 day turnaround.

They have been increasing their dividends, but historically have not given out large dividends because they've deployed it, with the oil sands product. He likes CNQ, it's trading at a discount, and when the keystone pipeline goes through the discount will narrow. CNQ also deals with natural gas which has been down for about 5 years now, and drilling has slowed in the US. Over time the prices will normalize which will also help.

Have owned for a few years. Is one of the highest costs producers of oil in the world. Can only be profitable if oil prices stay at the price they are now. Second problem is transportation, which has become much more prohibitive over the last 5 years. If we see natural gas replacing diesel, and shale oil being produced in the US, then CNQ is not in a good place.

(Down 6.21) She is purchasing more. Still believes it will do well.

(Top Pick May 10/12, Down 3.31%) Sold into the fall. He was worried about the western Canadian oil price. He almost bought back in.

(Market Call Minute) They can increase the dividend.