Legacy Oil and Gas Inc. (LEG.TO)

He owns small pieces in various funds. Down 60% since its peak in June. This is probably due to past issues in terms of disappointment on a quarterly basis and not meeting expectations. They are playing in some areas that are still early-stage. Trying to improve their capital efficiencies and rebuild some confidence in the market. Balance sheet is a big issue. Until they do a joint venture or some other external source of capital, he thinks it is going to be very difficult for them to get there and have the right amount of capital to deliver growth and be self-sustaining.

It is in the okay category. He does not focus on the resource space. Assets and Management are okay. No one expects a lot, but that is reflected in the valuation.

(Top Pick Sep 25/13, Down 22%) He switched out this week after management issued themselves another 900k of performance units. It is a name where they did a great job of reducing leverage. He does not know what they have to do to gain investor traction.

They are down to 2.4 times cash flow. Trading at half of NAV. We should start to see M&A if prices don`t come back up. They fixed the balance sheet. It is compelling value. 44% cheaper than the peak a few months ago.

Earnings were down last quarter. They also saw some really strong production declines. He would not pick it up here. Prefers CPG-T(Crescent Point Energy).

His calculated FMV has ironically been going steadily up, while the stock has dropped from its $10 level down to about $6. When he looks at the long-term valuation pattern, it is getting very, very cheap, at about a 40% discount to BV. Twice in the last 5 years, this has gone to a 50% discount, which would take the stock to 15, which would be extraordinarily cheap. This stock is starting to get quite intriguing.

In general this has been a pretty good name over time. You are dealing with a market that has been kind of fickle. Energy stocks across the board have come off 7%-9% in the last month or 2.

Would consider this as a Weak Buy. Executing quite well and building a nice little oil/gas company. From his perspective, valuations are a little bit steep compared to some of the stuff he has looked at. They are solid and building a nice business. Below $6.50 would be getting into the Buy range for him.

It is in its trading range. $7-$9. He likes it at these prices.

They have beat expectations and guidance for 8 quarters in a row. Their acquisitions lowered their debt. Their growth used to be lower, but management is ramping up their Cap-X to try to get growth going. He would get into the stock at $7.50 now that their balance sheet is repaired.

Have done a great job of deleveraging. He would be a buyer in the low $8’s. It has regained some of its lost multiple. Thinks that in 2015 they will outspend cash flow to increase their production growth to around 20%, versus their historical 12%-13%.

(A Top Pick July 23/13. Up 36.86%.) Good management. Got their balance sheet stretched a year ago, and it was standing out like a sore thumb, as being cheap. They fixed it by doing a couple of acquisitions and fixing the balance sheet. Thinks this could be at $12 in the next year.

(A Top Pick Aug 1/13. Up 35.77%.) Had looked too steeply discounted. Started to deleverage the balance sheet through some asset sales and performance started to get better. Sold some of his holdings as it started to move up, and thinks there are probably more exciting places to go.

A lot of non-yielding names such as this have gone up a lot. This one has gone up some, but compared to what she thinks the valuation should be, it has a lot more to go. Had considered having this as a Top Pick. Likes the acquisitions they have made. Decreased their debt. Great opportunity to increase oil production. Stock trades quite cheaply.

A ‘coming out of the blue’ stock. Model price is $15.09, a 57% upside. It needs to go above $10.22 before buying it. This is a great area to be in.