Legacy Oil and Gas Inc. (LEG.TO)

His company has a $10 target as an outperform.

Recent debt deal was taken up by a pension fund, which was a positive. Now that they have pension fund backing, he is more comfortable with the story. 2011 was rough because the spring breakup was longer in Saskatchewan but 2012 was okay for them. Lighter oil play that looks cheap on a valuation basis with good management. A bet on pure capital gains. Could get back to $7-$7.50 by year-end if we continue to see fund flows coming in.

Unfortunately, tarred with the same brush as many of the smaller producers. People are afraid to hold them right now because cost guidance has been going up, CapX has been coming down and production is disappointing. A dividend could be a potential positive but there are so many doing it now that he questions if it would be successful for them. Expect you will be waiting 4-5 more months for this one to start moving.

(Market Call Minute.) Probably a Buy here. Have done a really good job of living within cash flow and they gave a good reserve report. Starting to see excellent performance from some of their water flood projects.

(A Top Pick Jan 24/12. Down 41.92%.) Expect they will be announcing a very strong reserve update next month that will show capital efficiencies have vastly improved. You are getting a lot of light oil for free. Still likes.

Light oil play in Saskatchewan. But oil is land locked so not the best pricing. But could see it popping 10-20% as soon as opportunities present themselves to ship oil out of there.

He heard a large shareholder of Surge has decided to sell LEG-T. If it doesn’t move back up then it is a candidate to be taken over. He has been buying Surge.

Likes this. Very beaten up oil/gas name. Very attractive oil assets and very attractive exposure to light oil. Thinks they are positioned to grow their reserves, production and increased its cash flow and the share price should follow.

(A Top Pick Jan 24/12. Down 36.07%.) One of the few companies in 2012 that actually hit their exit guidance without spending more money. Doing exactly what they said they were going to do i.e. grow by about 10% using internally generated cash flow. Not issuing more debt or issuing more equity. Trading at a slight premium to the reserve value and at the same time you’re getting about 100 million barrels of light oil for free.

You are fighting a sector move at this point. It is a group that is not in favour. Wait to see this group start to perform before you start putting your money to risk.

Has been building a lovely base. When you see a breakout on one of these movements, it is extremely bullish.

Southeast Saskatchewan and southern Alberta properties, both Bakken oil plays. Not sure why the stock is down so much but could be because they are getting Canadian oil prices rather than WTI. Chart shows it is forming a nice base.

Likes this one. Growing production. A mix of light oils. Good management.

(Market Call Minute) No appreciable dividend and that’s why it is beaten up.

Been bogged by bad weather from over a year ago. Have consistently hit guidance throughout this year. On track to beat this year’s guidance. Feels they are on track to exit at 17,800 barrels a day. Looks very good for 2013. The challenge for some people is whether it is going to be a growth vehicle, dividend vehicle or a combination. Looking for a very strong reserve report to be out late February/early March. Trading at roughly 5.4X Enterprise Value to Cash Flow. Cheap.