Husky Energy (HSE.TO)

Sell and get Whitecap Resources (WCP-T) or Inter Pipeline (IPL-T)? Husky has always been the cheapest integrated major in Canada. Over the last 5 years has been a somewhat better performer. Moving into either of these, they are very different companies. Inter Pipeline is a midstream pipeline operator as opposed to an integrated. Husky has made good progress over the last 5 years and you are getting a good dividend. If we are to see a somewhat higher oil price due to worries about supply from the Mideast or from Russia, Husky might actually make further ground and go on to new highs.

Has a lot of great attributes. Coming off the tail end of a massive amount of capital expenditure. Will start producing gas imminently in one project. They also have an oil sands project that should ramp up towards the end of this year. You get a dividend and they have low leverage.

Husky (HSE-T) versus Suncor (SU-T)? This company’s numbers just came out and what he saw was compression in refining margins which indicated it was not a great quarter. It stands to reason that as heavy oil prices go up, refining margins get squeezed. He wouldn’t go to either one of these if he wanted to optimize his heavy oil exposure. Both of these are in the refining business and refiners are great when crude prices are low and gasoline prices are high. Thinks we are entering a period where the inverse may potentially happen so there will be compression on the refining margins.

The big integrated dividend paying oil stocks are going to do quite well with the lower Cdn$. This one has been unexciting, but the dividend certainly looks safe. The spread on heavy oil for the oil sands has really improved.

(Top Pick Nov 28/12, Up 26.06%) It was breaking out of a base building when he picked it last in 2012. Is continuing to move and is in the right place. Just starting a new up leg. Canadian energy stocks have a really good momentum at this stage.

(Market Call Minute.) Good company. Diversified asset base. Some international production. Seem to be getting their act together but always a bit tricky with the major shareholder.

Breaking out after having been ignored for ages. Very favourable. Go with it and hang on to it until it is over. Imperial oil did the same and would confirm what this one is doing.

Within the spectrum of the Canadian oil companies, the mid tier producers such as Crescent Point (CPG-T) that are growing production at a nice pace, are going to deliver a much better value on the long-term basis. This one is not a bad idea if you just want a blue chip company. He has this as an outperform with a $35 target. 3.6% yield.

It is braking out and that is a positive thing. He would pay attention to how it broke resistance and is in an uptrend, so it is a pretty nice looking chart.

An integrated oil so you get some diversification. When oil prices go down, the integrated part should provide a bit of a hedge. Good exposure in the Southeast Asian market where they are developing and drilling and the prices over there are substantially higher for gas than they get here.

(A Top Pick Oct 18/12. Up 15.01%.) Sold this a few months back and picked up Suncor (SU-T) instead. Husky would be a place to be if you want a real conservative company.

Energy producer so sensitive to energy prices. Decent yield. Owns smaller ones with higher dividends. This is better than SU-T for income investors.

Chart is showing a wedge formation, which is not necessarily a bullish pattern. Can’t tell whether it’s going to break through up or down. Given that we are outside the seasonal period, it will probably breakdown and will hit support at around $27-$28.

Chart shows a pretty interesting consolidation. There is a little bit of a slope with the recent attempt at a breakthrough. The problem is, the lows are lower and the highs are lower. If it could break the downtrend, around $30, it might be positive but he wouldn’t enter at this point because that is just a guess.

(A Top Pick Sept 4/12. Up 16.25%.) Sold his holdings in the low $30’s and moved into Suncor (SU-T). Would look to acquire this on any kind of weakness in the next month or 2.