Kelt Exploration (KEL.TO)

He has been averaging down on this one. It holds a premiere asset base with paybacks being less than one year. He thinks they will be able to unlock the asset value over the next two years. He thinks this could trade back above $10.

He respects how the company wants to create a strong asset base and then sell that off, rather than constantly be on the acquisition hunt. A high liquids content of up to 40%. Yield 0%. (Analysts’ price target is $12.08)

Just had a 20% correction, so it's now a good time to look at it. It's down, because it's taking time to get approval for some well pads in northeast BC. He expects they will get approval. But some fast-money investors got out which blasted out this stock. It's well-run with visionary managers. Fast growth. Strong balance sheet. Trading on par with its peers, but outgrowing them easily. Just signed a deal with Altagas to market their propane in Asia through the Ridley Terminal at attractive prices. He bought some personally at $8. Investors are neglecting this. It's a screaming buy. (no dividend, Analysts' price target: $12.03)

It's in a range and taken three years to return to 2015's sell-off.

They are doing all the right things. They had assets sales. They are strong at monetizing assets. One of the stronger performing energy names.

It should be rising now. It's had a great run since Februry, though it's seen recent weak momentum. It should hold around $9. Well-run company. The US dollar will have a strong influence in the energy sector. Hang onto it or buy around $9.

He sees $9 as key support. Earnings are expected in the next day or so. This is one of the best performing oil and gas stocks this year. It is at a high relative level and with oil prices falling over $2 be careful. He would use $6.90 as a stop.

Likes it very much. Sold it around $8.75, because of the seasonal period ending. Energy has two seasonal periods, early winter to spring, next one starts in July. Very high quality name. Fantastic trend, if a little bumpy. Expect to get back in. Would get back in anywhere around $7.75. Seasonally, names like Kelt could start a little earlier.

They have good reserves, good drilling, great liquids growth, and they are starting to build some of their own infrastructure. What he likes about them is their management team. They are good at acquiring and selling their assets. Their debt to cash flow is very low relative to competitors so they will be able to weather a storm. (Analysts’ price target is $10.88)

They buy good assets on the cheap. They buy good quality assets. Their production on a debt adjusted per share basis is going to continue to soar. They have good reserves. A real winner. One of the largest positions in his Fund.

It has acted quite well. It made a base last year and broke it a little. He would like to see it break out further. You want to see these producers strengthen here. This is a fantastic name and it will go if the whole sector goes. $8 is where you would take some profit, if it comes down to it. He would still buy it today.

(A Top Pick Jan 19/17, Down 1%) The best-performing Canadian oil/gas stock. Great management team accumulating large land base. A low-cost producer and growing fast at 20% by drilling liquids-rich oil wells in Canada. Will continue to grow.

This chart is very similar to other energy producers, he says. A recent run-up to $8.25 is helping establish an up-trend and he still likes owning it. If he sees a break below $6.68 he might change his mind.

You might want to make a small purchase on this. It has been trading between $6 and $7.50, so it is near the lower end of that range now. At this level, you can think of this as a trading stock. Use a tight stop at $6. Generally he is negative about energy stocks at this point. There is a lot of risk with this, and not a lot of positive fundamentals. Be willing to sell quickly and expect to make about 50 cents. There are many other trading opportunities that he likes better and he would not be trading this.