Husky Energy (HSE.TO)

This is positioned to benefit, like many of the other large cap energy companies, from rising oil prices. It’s a big company with great assets. To the extent that they are going to get into the pipeline business, those assets are more stable and less volatile. Trading at a reasonably low cash flow level.

(A Top Pick Nov 4/15. Down 15.38%.) They had a spill in Saskatchewan, and even worse there was a row with a Chinese company. He sold his holdings.

Usually energy does not do well this time of year. It is a weaker time for the year for oil stocks. We have seen some consolidation in this one. It is building a base. The next seasonal time for oil is coming up in February. If it breaks out in January or February, the that would be a good time to get into the stock.

(Top Pick Nov 4/15, Down 14.21%) They had two disappointments during the period. They cut the dividend, and then had a dispute over Chinese natural gas. The stock is now in ‘show me’ mode. This is not the name people are focusing on. He sees value beyond the next few months.

(Market Call Minute.) This hasn’t really performed. They did $0.49 in cash flow in the quarter. Production held up reasonably well. They put through a massive sale to pull down debt. If this backed off to below $12, it would be a great Buy.

A Short? Faced with a huge expense on a cleanup from the oil spill in Northern Saskatchewan. Like any other disaster, it is always hard to assess what is the ultimate cost. The company has always been regarded as a defensive play because of its refinery, and how that protects differential exposure. He doesn’t Short companies.

He usually buys oil spills and fires. But although this one is cheap he would go for the mid-caps. They have better balance sheets, better economics, can grow faster yet trade at a discount at present.

This is gone through a transition in the last while. Have sold 60,000 barrels of production, some midstream assets, and yet retained operatorship. They’ve been trying to reposition the portfolio in Canada. What has given him pause is that their partner in China has given notice he wants to renegotiate the gas price. That could drag on for a while. Looking at the group of senior stocks in Canada, this one represents significant value.

(A Top Pick Nov 4/15. Down 15.76%.) This was hit by the drop in oil prices as well as the breaking apart of the CNOOK deal. It has one of the best balance sheets in the business. Likes their focus on the enhanced recovery project they have.

As this is a more oil levered name, it should benefit with oil prices going up. The recent downturn is mostly related to things other than oil prices. The big gas contract in China has some question marks with talks of renegotiation. From this point on, they should be moving up. He likes this company. Pays a decent dividend and the oil sands project is solid. This should do well.

(Market Call Minute.) She wouldn’t want to be a holder because of the contract issues with China’s CNOOC natural gas issues.

Just recently reported and it was OK. This is an integrated, so it has some offsets and is not totally exposed. There are better companies with more torque.

A decent name. So much depends on what you think will happen with oil. Feels it is fairly valued right now.

(Market Call Minute.) They removed the dividend as they needed the cash flow to invest in the business. They are adding in more SAGD facilities this year and next. If this backs off $3 or $4, it would be a core name for the long-term.

A challenged company. Has one of the cleaner balance sheets, however management misstepped when they decided they were going to pay the dividend with all shares, and then decided to remove the dividend altogether. This is the trouble when you have one primary shareholder, as they essentially dictate what happens to the company. Doesn’t feel the upside is as great as with other companies. If you own, consider switching.