Ithaca Energy Inc. (IAE.TO)

Big development got pushed back about a quarter. Until 2014 it is trading at only 2 times cash flow, and then the major growth takes place. Good entry point.

100% North sea oil. Extremely cheap. North sea producers do trade at a low cash flow multiple but this one is roughly 2X cash flow versus about 6X for a North American producer. NAV is somewhere in the neighbourhood of the mid-$3’s. You will need some patience but you will get rewarded as they are bringing on new production next year.

(A Top Pick Oct 3/11. Up 27.45%.) Terrific management. Producing 5000 barrels a day out of the North sea. Have great growth ahead of them. Think they will eventually get taken out.

An old producer out of the UK North Sea and producing about 6000 barrels per day. Company was up for sale last year but didn’t get any bids this year which made the stock drop. Given the higher oil prices that they are getting with Brent prices, this is a good investment at these levels.

Market got excited with a non-binding takeover bid. Lots of stock moved over to momentum players and then it was taken down when deal didn't go through. Still trading below NAV and will probably go higher. It is a trading stock as well. Remember to take your profits.

A lot of technical points at these levels. She can see people taking profits however she still likes this name a lot. The big drop in June/July was when they brought the Athena well on to production and then hit a snag. Management is trying to unclog the well and she expects this to be completed soon, which would be a catalyst. At this level people will trade around it. Has been overbought on a technical basis but thinks it is still very cheap. She would suggest you buy a little bit here and later buy more.

One of the cheapest oil companies by price to projected cash flow. North Sea producer. Asset value is about $3.50. They are going to cash flow $2 a year out. There is a real good chance of it getting to $3 again. Good solid hold.

100% of production is from IK North Sea, 6k barrels/day. It is a pretty good entry point. Don’t buy it for a takeover possibility but for the fundamentals.

Rumours about a take out that turned out management refused. He exited half his position. It’s been tough in the north sea in terms of production.