Josef SchachterGran Tierra Energy Inc.GTE.TOPAST TOP PICKNov 09, 2017

Small oil and gas producer operating in Colombia. His preferred play is Parex Resources. GTE is more aggressive and not as financially strong. Parex has no debt, in fact has cash. GTE production fell off a cliff last year. Higher beta. More leveraged to an oil recovery, if you think oil's going to $70-75, which he doesn't.

Gran Tierra (GTE-T) vs Parex Resources (PXT-T). A tale of comparing two brothers. Both are in South America with Columbian core assets. Parex being a pure play vs Gran Tierra having ventured into Peru and Brazil and have exited these areas and now looking at Mexico and so forth. Prefers Parex as a South American play, very consistant. Gran Tierra has had its misteps, still has very good core Columbian assets.

He's out of the energy sector. It's one of the worst sectors due to an exodus of investors. He owns BP and a few smaller Canadian ones, like Cardinal.

It is his large cap recommendation. They did 100% oil in Columbia last year. They got some parcels in Ecuador. He likes the stock and has a $5.50 target and thinks it will go to $12. They are buying back the stock on weakness themselves. (Analysts’ price target is $5.28)

(A top pick September 18/17, up 65%) The company has done a fabulous job. They are in Columbia.

(A Top Pick Sep 18/17, Up 62%) They did very well with production. There was the bump in oil prices and he sees further increases in production.

He prefers this to Parex Resources, which also drills in Columbia. GTE has a more significant growth profile. It has no problem on its balance sheet. The stock sells closer to its book value than Parex. If you have Parex, sell it and buy Gran Tierra on weakness.