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NAL Energy Corp (NAE.TO)

COMMENT
Well managed. If you are patient with this, it should be solid and it should do quite well over 6-9 months.
BUY
Mid-tier, mid-quality trust. In partnership with ManuLife (MFC-T) and feels this relationship will continue. Stock had a lift recently because of the Cardium light oil play, but this is still a “show me” situation on how the drilling technology plays out. Well run and conservatively managed. 9.6% yield will probably have a modest cut.
BUY
Core holding for a long time. Lots of confidence for along time. Great land position. Interesting gas properties. Fairly well capitalized. Upon converting to a corp. They should pay a fairly large dividend. Taxable position fairly reasonable.
BUY ON WEAKNESS
About 50% each in oil and gas. Have some interesting new oil locations. Recently raised money for their CapX programs. Good management and good strategy. Would like more perfect nation on what their dividend will be in 2011. 9.3% distribution.
COMMENT
Very well run and solid. If you are in it for income, over the long haul, continue to Hold. If you are looking for capital gain in the oil patch, look for something with more volatility such as Petrominerales (PMG-T), Pacific Rubiales (PRE-T) or others where they are drilling a lot.
HOLD
Good, mid tier, steady player. With a resurgence of the Cardium/Pembina light oil play, they have a strong position.
TOP PICK
Good operator, mainly oil. Some nice older plays that with new technology could really come on. Good production and lots of drilling locations. Yield of just under 8% that doesn't look like it will have to be cut on conversion.
COMMENT
Very solid and well run. If oil stays up and gas comes up, they won't cut distributions. If there is some weakening in energy prices, they will probably cut to protect cash flow.
BUY
He just bought Bonavista but almost this one. Because it will convert to an ongoing company, the market has discounted it. Like a lot of other companies but it has this cardium piece. It’s an exciting company at this price.
DON'T BUY
Arc energy or Pen West is a better pick.
WEAK BUY
Likes the name. If you are less risk averse, this is a good place to be. Management above average. There are other names that have more torque going forward .
BUY
Yield should be safe as they have given guidance that after conversion will be a high dividend payout model.
TOP PICK
Very well managed. Great arrangements with Manulife (MFC-T), which allows them to get into larger deals. Have a lot of “heritage” fields that will be able to use improved recovery techniques. New good drilling going on.
HOLD
A good “steady Eddie” type of name and has good backing by ManuLife (MFC-T). 8%-9% yield. Reasonable valuation. There may be some reduction in distributions in 2011 but it will be modest. Significant position in the Cardium formation in central Alberta.
PAST TOP PICK
(Top Pick Sep 24/09, Up 16%) Has been a core holding for him. Good balance between oil and gas.
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