Dennis da SilvaCrew Energy Inc.CR.TOBUY ON WEAKNESSJun 06, 2013

Some people own it for M&A takeover potential. He doesn't like to do that. It's a market where interest in small caps remains very low. Not hitting enough radar screens currently. Pursuing growth, so more modest cashflow. 

Nat gas prices have been slaughtered, which impacts this one. Likes that it managed to cut production. Bit of an overhang in nat gas, so there's an overhang on valuations. He focuses on the larger integrated players like CNQ.

He used to own this when natural gas was $3-$4. The equity value of this company is being ground down, day after day. It has to spend money to keep going. Be careful with these small cap names. These will be one of the first ones that banks will require to consolidate due to credit exposures and bank line covenants. A high risk investment.

CR-T vs IPO-T? He owns CR-T, whose production is 29% liquids. IPO-T is focused on 66% liquids. He likes both and they are very cheap. He would add to holdings on both. Both have good balance sheets. CR-T is buying back shares as well.

The market cap is a knock against them and then there is the leverage. But if you want the exposure, he would own BIR-T.

VII-T vs CR-T? He would stay away from CR-T due to its debt level. VII-T has a good management team, but its slow down in growth highlighted their 50% decline rates in existing assets. This causes too much of their cash flow to still be required for maintenance. He would prefer NVA-T, which trades at a lower multiple of cash flow, has a better balance sheet, and lower decline rates on production.