Husky Energy (HSE.TO)

(A Top Pick Feb 23/12. Up 24.31%.) Has some support at around $30. He feels it could still get to $36.

(Market Call Minute.) The least favourite sector of the entire industry right now. Stock has pulled up a little from its low point, but he is not inclined to Buy.

Cut their dividend and she thinks the dividend is quite safe now. New management has stabilized operations. Focusing on getting their play in China into production. Believes they are on the path to slow, steady growth.

Pipelines are bit on the expensive side. Harder part of the cycle to put a lot of money into. Wait for energy sector to correct (into the summer months)

Changed CEOs and now is doing well. Integrated activities and leans into China and has relationships with them. He would buy it and it is run very well. 3.8% dividend.

They are able to get top pricing for some of their oil. Properties off shore and western Canada plus Indonesia and China. They have upgraders and pipelines. They have lower cost of getting oil out of the ground. Dividend is safe. 2.7% dividend.

The top is EVB+3, or $40.81, a little above his model price. He saw people attracted to a 5% dividend which is now 3.75%. $34.82 model price or 9% upside so it should still run but you are in the 7^th inning. He would look elsewhere, e.g. south of the border.

Cenovus (CVE-T) or Husky (HSE-T)? Slightly different companies but he would favour Cenovus which has a few more catalysts than Husky. Prefers other names to this one.

Developing a W formation. This is very important.

Has been somewhat less volatile than others. That could be because of the parent company Asian ownership. Wouldn’t have the attractive growth profile as smaller companies but it is safe and has a dividend. As a blue chip way to play the sector, it has been a good performer. 4.5% dividend.

Stock has laid dormant but the yield has been okay. Good assets and they are integrated. The guys who are integrated and can make money at the gas pump have been doing quite well. Listing in Hong Kong and the Hong Kong and Shanghai markets are technically looking quite well these days. Good solid company with good assets.

Has a fantastic money flow situation. Will have a bit of resistance around $30 but think it will punch through this figure and reach around $33. Has been building more of a growth profile recently with its projects. Pays a nice, fat 4% dividend.

(A Top Pick Nov 2/11. Up 16.93%.) This was the best performing heavy oil stock last year, partly because of the dividend. Sold his holdings.

(Market Call Minute) Be careful of the big Canadian Western producers. Not behaving particularly well.

The reason it goes up, down and really goes nowhere, is that they really lack production growth. 3% production growth versus 8% for its peers. In 2014, a lot of assets come on stream so there is big upside there if that happens. In the meantime, your dividend is pretty safe and you won’t have the same volatility that you do with a lot of other oil names because 40% of their business is downstream refining, which has done very well, and gas stations. Try to buy on a pull back.