Crescent Point Energy Corp (CPG.TO)

One of his preferred ways to play the Canadian energy sector. This is a company that knows its business and increases its cash flow and dividends. Thinks they are on the way to annual production of 200,000-300,000 barrels a day which puts them fairly close to Imperial Oil (IMO-T), Husky Energy (HSE-T), etc. Yield of 6.29%.

A great growth story. A few years ago the stock was on fire and people made a lot of money. He thinks people became over enthusiastic about it and the stock got ahead of itself in terms of price to cash flow. Compared to some of the majors, you are paying more for $1 of cash flow than for others. People justify this on the basis that the yield is so great. He always felt it was pretty expensive and a lot of the glory days are behind it. Prefers the senior producers.

Seasonal strength is last week of Jan until this time of year. It has reached its peak. It is showing some early signs of resistance. Now is the time to take some good money off the table.

At current levels, he would not be jumping in right now. At $40 or under he would certainly be taking a close look. Pays a good dividend. Very good operators and very good acquirers.

This is a good entry point. Great management. The more he watches the name, the more he respects what they are up to.

Stock vs. Stock: CPG or CNQ. Doesn’t like saying one is better than the other because he doesn’t dig down deep on fundamentals. CPG has been doing a lot better than CNQ over the last little while. For a couple of months he has been saying you want to get out of energy stocks at the high end of the range so he would take money off the table.

Recently struck a deal with CanEra Energy as well as making a huge discovery in Saskatchewan. Light sweet oil, good management and good operations. However, it is really expensive, trading at 9X price to cash flow. Prefers Suncor (SU-T) which is heavy oil and which surprised on their last quarter numbers and the tailwind is in their favour.

A large position of his. Criticized for dividend policy previously. They have years and years of drilling targets ahead of them. It will continue to grow its dividend as wells go ahead. 6.2% yield.

(Top Pick Apr 22/13, Up 29.74%) You are getting a very good yield. Long term he thinks it will join IMO and HSE as a major. This implies a doubling in production.

Leaders in the field of technology of water recovery. Is quite a positive leverage to oil flows. Sees them being up there as a major leader in this area. Dividend is safe, although it may not increase.

(Top Pick May 21/13, Up 24.22% total return) Dividend is sustainable at 7%. A rock solid balance sheet. Have a program of acquiring light oil assets and building inventory.

Thought there would be some upside when he was on in October. The numbers they are producing are better and he thinks they will produce higher and that the stock will also go a little higher.

(Top Pick Apr 17/13, Up 35.19%) A frustrating name but two weeks ago announced success with an asset. Finally people are caring about the company. Re-ratings are taking place in the market place and soon will be done by analysts.

An interesting oil company in that they are almost more of a manufacturer than a “search and find” company. Through horizontal drilling, they have basically got 3 great positions in old oilfields and it is all about capital deployment and operating efficiencies. Feels the dividend is safe. There is enough growth to keep it going. Yield of around 6%.

Long term is 2-4 years. The company is designed to do this long term thinking. A good idea for a long term investor.