Daylight Energy Ltd (DAY.TO)

TOP PICK
In revenues it is about 50% oil and 50% gas. Reserves are growing nicely and pretty well managed. Stock had a big pullback so it's a great entry point. 6.5% yield.
BUY
A good solid name. Dividend is safe. Reasonable upside by holding it.
TOP PICK
(A Top Pick June 15/10. Up 3.15%.) Had expected a larger gain on this one. 60% in natural gas and the poor prices did it in. 6% yield. Well placed in the deep basin which is prolific in terms of liquefied natural gas.
HOLD
Did very well through 2009 but right now is in a horizontal trading range. The best time to buy is when it breaks out of the trading range into $11.50-$12.
PAST TOP PICK
(A Top Pick Sept 13/10. Up 11.98%.) Good story. In the sweet spot of the deep basin where there are a lot of good economics on liquid rich gas. Have done some oil acquisitions. Safe dividend. Worth $13-$15.
BUY
Long term outlook is stellar. Good production mix between gas and oil so they can toggle their spending between the two as market conditions dictate. Significant gas inventory if there is a rebound in gas.
BUY ON WEAKNESS
Has the potential of becoming one of the premier E&P large cap companies. In cardium gas as well. Yields about 5.5%. Interesting one to hold. Would buy in the low $10’s.
BUY
Likes this one and is looking fairly attractive. Have had some impressive results lately in the Cardium play in Pembina. Over 5.5% yield.
DON'T BUY
Scares him a little. Balance sheet numbers are kind of falling away. Stock has been doing well in the market but fundamentals underneath it do not justify it.
COMMENT
If you are looking to clip a coupon, it’s probably not bad. Their production rate is to a point where he thinks they are challenged to grow production.
BUY
Likes it. A light oil play. You get gas and light oil byproducts. He likes it in here. Comfortable with growth potential. Balance sheet is a bit more stretched than some of their competitors.
TOP PICK
(Top Pick Mar 12/10, Up 0.09%) Likes natural gas liquids part of this company. It’s very profitable. With increased technology in horizontal drilling and two very astute acquisitions, they have built up their inventory of drilling sites substantially. Thinks it is the cheapest of the bunch.
WAIT
They need to get their act together in terms of production profile and they need to get their credit situation in better shape. He would hold off for a bit before buying. Prefers gas companies that are more exploratory in nature.
HOLD
About 50-50 on oil and natural gas. Currently their capital spending is directed towards oil. Payout ration is about 40%. Expect with current oil prices they’ll be able to sustain the dividend.
BUY
Valuation in previously income trusts is better than the juniors, which had a hack of a run. Daylight is transitioning from gas to oil. Management is well regarded and dividend is safe. 5.4%
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