Crescent Point Energy Corp (CPG.TO)

Intermediate oil companies like this one have been awful. There’s been a migration out of these stocks by the big investors. Price of oil has gone up, but these stocks have not. Won’t see increases until the industry consolidates. Reasonable dividend. Hold it if you own it, but otherwise stay away. (Analysts’ price target is $12.81.)

He has always felt the crux of the issue was around the quality of management. Serial issuer of stocks and acquisitions – they took it too long too far. He thinks half of the 185,000 boed could be up for sale to help deleverage the balance sheet. They have strong assets, but he wondered how many years of inventory were necessary. The market has not given the new management team the benefit of the doubt. It is at all time lows in terms of valuation.

It is another turnaround story with new management. It has been a short for him for a while. He thought there would be enough earnings power for some cash flow but it all reversed in the last couple of months. It has poor price momentum and is not cheap enough. He is still waiting for that turnaround in the energy sector.

He does not believe the company will increase the dividend and does not see any huge upside, after meeting the new CEO. Some much of the strategy revolves around asset divestiture, which could take two years.

The company announced they want to pay off $1 billion in debt. They will likely sell 50,000 bpd of production – most in the Bakken. Book value is $16.32 per share. Management is talking about focusing on core assets and a 17% reduction in employees. Selling pressure is high as it is being removed from a couple of small cap indices. He thinks this is overdone – he would not be a seller here. The stock is pushing a 5% yield.

Difficult to know in the short term if this is the place to enter. It has some very positive attributes – good cash flow and good land holdings. They have decided to lay off 17% of their staff to reduce costs to survive. When it is down and out, it is not the time to sell – maybe time to buy.

A traditional oil/gas company. As a long-term investor, he wouldn't buy this. He's concerned about oil demand given the rise of e-cars in the next decade or two. Also, what is OPEC going to do? Canada doesn't have control over the oil price.

Its book value for the past 4 years has been eroding. He'd like to see its balance sheet improve. Doesn't trust companies like this that are eroding. Pays a 4.4% dividend.

He has been tempted to buy into this. It is trading at production blow down levels. For the street to care again the company has to hire an outsider to lead the company that would signal a change is coming. There is no catalyst to signal anything other than status quo.

It is primarily Western Canada oil production, which has fallen from grace. It will not return to previous values anytime soon. It should be a $12 stock, but the discount just will not go away. He would recommend many other names. (Analysts’ price target is $13.50)

It is very cheap. New management team is trying to rebuild their credibility because of executive compensation and stock issues. Below $8.00 is a buy. Book value is $16.32. Is on their coverage list. Has a 1 year target of $16.00. He would not be a seller of this stock if you currently own it.

They have about 180,000 boed and there is some concern over the strategy of management. He does not like seeing a 52-week low when the rest of the sector is not. He would be inclined to sell.

Oil stocks in general aren’t going to recover. Canadian heavy oil selling at 30% discount compared to WTI. But they are generating cash flow. People are turned off the sector. Until we see some increase in dividends, or takeovers, the sector is dead.

A $5 billion marketcap and pays a good yield trading near the bottom of the $8.30 - $11.00 trading range. An excellent short term buy, but trade with an $8.20 stop. Short-term potential is above $10.

She does not have a lot of exposure in energy right now. They are going through a management change. In the past, they issued a lot of equity. They need to be more focused. She would not be buying the stock here.