Imperial Oil (IMO.TO)

This company does benefit from this time of year as there is a seasonal trend in energy prices from July into September. However, as an integrated name, it does not benefit as much from exploration/production and is not the best way to play the seasonal trend. There are only a couple of more weeks for the energy trade for the seasonal trend. If you own, sell on any strength over the next couple of weeks and look at playing this more in the winter months January to May.

Second-quarter might be a little softer because of the downstream refining exposure. He has been waiting for the barrels at their Kearl project to really come on stream. It has been slower than expected.

This one is not aggressive although it did do well a year ago. It will go up if oil continues up. Fine company to hold.

(Market Call Minute) Dividend a little low but he might look at it.

Integrated oils move higher from Jan-Feb and then end of July until Oct. Right now it is forming a nice little base pattern ready for July. The price of crude oil broke above a triangle to the upside today. IMO is starting to look very interesting. Look for a move as we get into the summer.

Feels it is relatively expensive in terms of some of the other integrateds such as Suncor (SU-T). Yield is not that significant.

As a treasure trove of energy technology, there is none that can surpass this. Of the 4 major oil sands players, this is the most expensive. Until there is a resolution of the Keystone situation, he would stay away from any of the oil sands stocks. Even if the Keystone does not go through, real capacity is expected to be doubled over the next 2-3 years.

Hold or sell? Sold earlier this year. No plans to get back in. Recommends that you hold if you own. She instead bought a company with a cheaper multiple and higher yield.( Argent Energy Trust-TSX AET-UN)

(Market Call Minute) Big integrated oil companies have no pricing power so own the infrastructure companies, same as ATH-T

Long Tag Oil (TAO-T) and Short Imperial Oil (IMO-T). A Pairs trade. Put this against the Short to offset any fluctuations in crude oil prices. Also, he is not too optimistic about Western Canada, Kearl and the Syncrude projects.

(Market Call Minute.) Kearl is going to be the big growth driver but it is expensive. Would tend to Sell or Hold this.

A 100 year plus track record of paying dividends. Has the backing of Exxon as a 70% investor so have unlimited pockets when it comes to financing. They are ready to pull the trigger on the Kearls oil Sands project and it should be in production shortly.

(Market call minute.) Wonderfully well run company. If it gets to $50, Sell.

(Market Call Minute) No identifiable catalyst.

Basically peaked out in 2008 in conjunction with the oil price and has been flat ever since. Have very good assets. Building the Kearl oil sands project and will be coming on stream soon. It’s always trading at a premium, partly because they are 75% owned by Exxon (XOM-N). Also, the dividend yield is not attractive enough for him. If you own, it will do you well in the longer-term.