Crescent Point Energy Corp (CPG.TO)

(Top Pick Apr 7/16, Down 17%) He struggles to see what gets this story re-rated.

He likes this. It has high leverage to oil prices, and he believes oil prices are going to go higher from here. This has one of the best land positions in Saskatchewan, Manitoba, and the US. In the past, they’ve had some issues with excess of issuing shares that diluted the company on a short-term basis. He feels they are putting a stop to that and will do much better going forward.

Average down? His biggest issue is that they seem to be serial issuers of stock. They continue to dilute the existing shareholder base, not a friendly thing to do. The US assets are great and they have increased production, but it is important to focus on production growth per share, and this one gets diluted down. They’ve already cut their dividend.

This is a good time to be investing in this. It has had a long-term track record of success. They’ve stumbled in recent quarters and their production was down. When you have a company with a strong track record that stumbles for the short term, it is very likely that they are going to get back on their feet and resume the growth track record that they had.

This has been beaten up pretty thoroughly over the last while. They came out with a new issue, and that really was tough. It was a bought deal, and ended up in the banks, and the stock hasn’t recovered since. The company is still a well-managed intermediate company. Feels oil is going to go back into the $60 range. They have excellent properties in the Bakken area.

This has underperformed. They did a stock issue that investors were not too happy with. In terms of communication, this company has not been the best. There have been rumours of potential activists investors coming in, but the company has stated that there is no one really interested. Thinks it is going to be a “show me” story. They have great technical expertise and have been able to increase production in the past.

Last year they did a share offering, and then cut the dividends. Should I hold or dump? The stock got hit pretty hard about 2 years ago when oil prices dropped. He would not hang onto this any longer. A well-run company, but there is nothing you can do about it. As long as oil is trading in the neighbourhood of the low to mid $50, it is difficult for this company to make money.

One of Canada’s preeminent oil companies. The largest landholder on the Canadian Bakken play in Saskatchewan, and have built a very big company on the back of that. One of the more profitable oil plays. We are now in a bottoming and slowly rising process now with oil prices. This is probably one of the better plays in the Canadian energy patch. A lot of institutions have a sour taste because of past transactions. A good investment.

It is in the sights of an active investor. There is this downtrend and will probably run into resistance around $17. People are interested when you get two bottoms so close.

She has been adding to the name for at least the last year and a half. It is 90% oil and is leveraged to its price. They are in Saskatchewan and Alberta. Prior to the down turn in energy they were criticized for continually issuing equity to fund acquisitions. In September of 2016, they came again to the market, but to strengthen their balance sheet and fund Cap-X. They have lagged in this rally because of this. We will hear more about what the activist investor wants to do. She is going to hold on to it.

We are going into a rebound in oil prices. It might be choppy and saw toothed, but he feels oil prices are going to firm up. CPG-T is quite leveraged to oil prices so he would not sell it. He would buy it. It’s a "goto" name and gets put into the penalty box now and then. It has a decent payout and he thinks the valuation will bounce back.

The problem with oil is that as soon as oil gets above $50, there are lots of operators ready jump into action. The question is if CPG-T can be profitable with $50 oil. Warrant Buffet believes oil prices will be contained forever.

The knock people have against this is that in the past they were always buying assets and issuing more paper, at lower prices a lot of the time. He likes the company. They have great assets in Saskatchewan and some in the US. They’ve drilling inventory for years to come. They are taking the best of the technology and drilling longer wells. They are improving their efficiencies. This is going to be a turnaround at some point.

A stock he has liked, but hasn’t owned for a long time. They went through a period where they were serial acquirers and serial issuers of stock. They went through a time where they didn’t make acquisitions and didn’t buy any other companies, and he thought that was great, and then they went and did it again. He would rather be buying energy companies where they are not diluting him down every time they start to grow.

(A Top Pick March 21/16. Down 21.19%.) This has been a disappointment. When he recommended this, oil prices were lower. After he recommended it they raised money at about $19.30, and ever since, the stock has been under quite a lot of pressure. There was a lot of misinformation from the company stating they weren’t cutting the dividend, and then they did; they were going to raise equity, and then they did a $500 million equity deal. He still owns some, but has trimmed over the last 6 months.