Legacy Oil and Gas Inc. (LEG.TO)

Was hit hard. Production will go up in the next couple of years. Low multiple. The worst is over. Was lots of shorting two weeks ago and they may be covered.

Like a lot of the energy companies, this is attempting to build a base. The big trend has been down but there is a possibility that a base is being formed. You would want to see this base broken out before entering. If it breaks to the upside, that could be bullish.

Super cheap company, run by triple ‘A’ management team. Stock has been beaten up and is in a part of the market where they don’t generate enough growth for growth investors but don’t pay a dividend. Would not buy it here but would not sell. He is not sure on the timetable for their transition from a corporate basis.

(A Top Pick July 16/12. Down 7.22%.) Beat their 2012 guidance, their Q1 guidance and he thinks they will beat their Q guidance and this April drilled 4 of the best wells in all of Saskatchewan. They’ve unlocked their Turner Valley play and getting record wells there. Have also added upwards of 100 at a new play called Midel. Still likes and at this price, that is where the opportunity is.

Suffered from the wide differentials and it has been a headwind for a lot of these companies. They have done a good job with their CAP-X program. There is talk that LEG may adopt the model of paying out more to investors instead of so much CAP-X. They are one of the better operators in his view. He does not have a lot of commodity exposure right now.

Oil has been in a giant symmetrical triangle formation and is attempting to break out to the upside. Thinks it has to break $97-$98 before it breaks out of the triangle. Seasonally, oil doesn’t tend to move well this time of the year.

Well run company that seems to get no respect in the marketplace. Has great sponsorship at the board level. Perhaps the “made in Canada” oil price affected the value of the stock. Also, thinks it was probably well owned in the US and he suspects there has been a wall of selling coming out of there. Looking at this one.

Has been in the penalty box for a couple of years. Have lived within cash flow. First quarter was pretty good. Debt levels are in the range of 2 times debt to cash flow, a bit high, but he forecasts 7% production growth and no dividend so he has gotten close to including in the portfolio. Prefers Manitok Energy (MEI-T).

Legacy Oil is a stock that she has purchased recently. "They have been taken out to the wood shed as with many other companies". Believes that the stock will go to $7-8 in the next year. They may put a yield/ dividend in their corporate structure.

(Market Call Minute.) Cheap and has great recycle ratios but he likes other names more.

(A Top Pick March 19/12. Down 52.17%.) One of the few companies to hit their numbers last year. Trading 4X below next year’s cash flow and you are getting over 160 barrels of light oil for free. Can grow by 12%. Still likes.

Great company. One of those companies that has enjoyed growth through acquisition. Great exposure to the good things going on in the Saskatchewan oil/gas business.

(Market Call Minute.) Light oil in southern Alberta area. Experiencing excellent net backs.

How is this for 3-5 years? This one is fine for a 3-5 year hold. Has been beaten up with the sector and production problems. Did a couple of good acquisitions. Improving the diversification of their asset base. Well managed.

You have an oil weighted company. Suffering from the differentials issue. Well run company in Saskatchewan and Manitoba. Should benefit in the second half of the year.