Daylight Energy Ltd (DAY.TO)

BUY
Used to be a trust and has a high yield of 8%. Payout ratio is in the high 80s. A call on this would be a call on where energy prices are going to be. He is long-term positive on energy prices.
BUY
Another good example of a good oil and gas company that has come down in value. Yield over 9%. Good properties, in the cardium. Payout relatively secure. Good line of properties to drill. Over last year or two he has been watching it and it getting to a point where he is very close to buying it himself.
COMMENT
Fundamentally it looks good. He is sticking his neck out by saying it might be a buying opportunity. Sees the low at $7.36. You might get a $.30-$.40 rally. You can buy, but don't have big expectations.
BUY
Junior-midsize oils, particularly the gas mixed companies in southern Saskatchewan and Alberta have been decimated. Good valuation.
DON'T BUY
Well managed, but too much gas. Have some gas liquids and light oil but he is shying away from anything with gas in it. Yield's not bad.
TOP PICK
Midsize exploration and production company in Alberta. Just bought 130,000 rights to drill a new level in a deep zone called Duvernay in the Pembina area.
PAST TOP PICK
(A Top Pick June 10/10. Down 15.58%.)
BUY
55%-45% gas to crude. Have been announcing some favourable discovery results in some of their wells. Very nice yield at close to 6%. Attractive entry point at this level.
TOP PICK
(A Top Pick July 14/10. Up 15.17%.) Natural gas oriented. Hit a big well in the Montney area, producing ample liquids along with natural gas. Have 160 drilling locations here. Expected to produce 8000 BOE's a day over and above current 40,000 in 18 months. Target of $13.
BUY
Likes it and thinks we will see some production growth in the second half.
HOLD
There are several good things happening here. Appetite for risk has pulled back substantially, so good companies like this have pulled back even though the commodity prices have held in well. Worth substantially more than what it is trading at now.
HOLD
Pretty high dividend payout after converting from a trust. Good package of assets that is balanced in liquids and natural gas. Good management. Operational results still need some improvement, which will take time.
HOLD
Energy group has been the worst group since March. Pipeline has done well. To switch would be selling low and buying high. The trade is ok but the timing is not right.
BUY
Likes this company. Well-established. An up-and-coming potential senior E&P company. Yield of about 6.4%.
SELL
His model price is $4.55. Dividend of 6.42%. Slated to make no money but to lose five cents this year and $.20 in 2012. This company has failed his solvency test.
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