Crescent Point Energy Corp (CPG.TO)

It is on his watch list. He looks at it. It has tremendous upside if they look after debt. When it turns it could go up quite hard and quite fast. You could trade it in the range between $8 and $11 as well.

Corus Entertainment(CJR/B-T) or Crescent Point Energy(CPG-T). Run don’t walk away from Corus Entertainment. Is a declining business. They own media assets. They have slashed their dividend. There is a governance issue. Going to be hard to get out of this secular decline that they are in. He would sell it. Crescent Point Energy: Some activists involved in this one. The tailwind for this is the rising oil prices. Time on your side on this one. Would be less concerned about this stock versus Corus.

It hasn't recovered since oil prices came under pressure several years ago. We need pipeline capacity to sell across Canada and to Asia. They are taking down the leverage on their balance sheet, but he does not see a lot of upside. The issue is the energy sector in Canada.

There have been issues for the past few years. He favours Cenovus and CNQ instead. There are Board and proxy issues. They have not shown they really hold the assets to turn things around. He would be a seller.

He knows there are changes in management. The balance sheet is not bad. Management has to show they have a game plan for growth. Debt went up in the first quarter. It needs to come down. Watch to buy the stock below $9.

She owns some shares but has not been adding to this position for a few years. The company is changing its management. The market wants them to stop issuing equity to fund land acquisition and to pay down debt. She is waiting to see who the next CEO will be and what his or her direction will be.

Crescent Point or CNQ or Parex? For a portfolio strategy, especially in a taxable account, could consider taking a capital loss and going over to CNQ. The oil stocks have really lagged the commodity. Significantly undervalued. If you have big oils in your portfolio, they could underperform Crescent Point. Once Crescent Point starts to move, it will probably move fairly dramatically.

Competitive call structure, lack of growth. Paying down debt instead of reinvesting in the business, which will hit their growth longer term. Prefers CNQ which has more growth and higher yield.

The problem is that they were a growth story and got into some trouble when prices went down. Now you are looking at a company trading at a significant discount to book value. He is not looking at much growth this year in production. Debt went up last quarter to 48%. He likes the stock and thinks he will recommend it when oil goes up.

He bought this the day the investor activism was announced. When you look at executive compensation relative to shareholder value creation, it seems excessive. They announced a new CEO from within the company. It suggests they are not embracing a new approach to running the company. He can do way better owning other names.

This has had a lot of issues. Its peers have recovered (to a degree), but CPG still struggles. They paid too high a dividend during the trough of the oil crisis.

This is still looking pretty typical for energy stocks despite the CEO stepping down. He would use $8.65 as an exit on new length. He would not be a buyer until it moved back above $12.10.

A sell for so long because the Management team doesn’t care what their investors thought. They issued equity and boosted dividends making you pay taxes. Good assets. The CEO has stepped out a couple of days ago and that got people excited. Cheap but might stay cheap for a long term.

The CEO resigned yesterday then the stock rallied big time. CPG was aggressively run, chasing high-cost oil when the price of oil was high. It did a good job. But now it's not the company to own when prices have fallen. He'd avoid it.

The Energy sector is interesting from the psychological point of view. Some people believe that fossil fuels are going to disappear from the horizon. Doesn’t make sense at all to him. This company has more debt on the balance sheet than it should. Still he likes it. It depends very much on what you believe the price of oil is going to do. They are out of the oil sands sector.