Legacy Oil and Gas Inc. (LEG.TO)

Well run company, growth with good assets. Capable management. Complete disconnect between companies and commodity price. Discount to NAV. Over time will do well.

They have done everything that they said. Did a debt deal with CPP. Thinks they will institute a dividend after the next quarter. Doesn’t know what is holding it back.

Light oil producer. Operationally they have been doing an awesome job. Last week reported spectacular Q3 earnings above expectations in terms of production growth – 27% in 9 months. Drilling costs are down about 15% and key wells are coming on better than expected. CPP invested in them this week. Came out with a positive contingent resource report. People have been shorting oil stocks. The next catalyst is a reserve report, which he predicts will be very material because several plays have been outperforming. Potential for a dividend in 2013. He predicts 5%. And then they would grow by 7%.

Management has transitioned a bit. Love high margin, high productivity oil. Likes LGX better, but LEF could be a takeout candidate.

Has been a big disappointment for most Canadian oil investors. Last year they were caught up in a lot of difficult weather situations in Saskatchewan which delayed production. At this point it is a “show me” story. He just nibbled at this last week at around the $7 level.

Fundamentals are very negative. Stock is turning around, though. The rally from July is loosing momentum. Put a tight stop of $6.60 as an exit point. Hopefully another rally will push it to about $9. Be careful.

Likes it here. Took a big drop when people became worried about resource stocks. Clearly having a bit of a bounce back. Technically it looks really good.

(A Top Pick Oct 13/11. Down 20.03%.) Light oil. Value of the reserves is roughly $7.50. Un-booked resources are 220 million barrels, which he calculates at about $20 a share. Management is fully aligned with shareholders interests. Very sustainable business model.

His opinion on this company has changed to the positive. Will do a good job of working themselves out of the penalty box. Last year, finding costs were terrible. Had trouble meeting production numbers. Debt levels are a little bit high but some of their drilling results are going to impress the market. This is on his short list of stocks that he is looking at.

(A Top Pick Sept 12/11. Down 31.03%.) She purchased more at around $6 or so. Oil focused and an aggressive team. Can see this getting to double digits.

NAV around $10. Management is very capable. Has terrific number of new drilling sites they can develop. There is a flow of funds. Resource stocks are having to sell assets to fund distributions. Believes this is a good hold for a higher market price. Is a volatile stock. Goes to the moon when the market likes it. Lots of liquidity. Likes it because of a billion of tax loss carry forwards.

(Market Call Minute.) Has turned around recently. A Buy in the low $7. $9-$10 in one year.

(Market Call Minute) Likes it. Producer of light oil