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NAL Energy Corp (NAE.TO)

COMMENT
Hedged at $132 on 48% this year but is going down when oil is going up. Why? Doesn't have as much institutional support. Oil has to move up before the stock will perform.
HOLD
Probably a good quality energy trust. Production is fairly well balanced between oil and gas. Solid management.
HOLD
Very high quality asset based. Have consistently been able to deliver distributions with maintaining modest growth in reserves and production. He will continue to hold this through the cycle.
HOLD
Mid-tier average quality name. Cut distributions earlier this year. Fairly good shape and provides a pretty good up front yield. Have a very strong partnership with ManuLife (MFC-T) for me king acquisitions. 17% yield.
COMMENT
Ranks fairly well in his growth model but doesn't jump through all the hurdles. On the value model it does not rank well. Earnings estimates have been chopped by 60% in the last 3 months. Looking out to 2010 growth is forecasted to be 17% negative. Distribution could be at risk.
BUY
Excellent property base. Some risk to their distributions in a lower commodity price environment than today’s. Good management.
BUY
48% of oil is hedged at $132. Excellent management. Evenly balanced production between oil and gas. There should be recovery later in the year on oil and gas prices. 17% yield.
STRONG BUY
Yield of 16%-17%. Have hedges of $132 for 2009. In the trust sector this would be her Top Pick.
COMMENT
This depends on your view of the oil/gas price. Will likely be some reduction in payouts this year if prices stay at current levels. He believes oil/gas has legs and $70-$100 is a pretty reasonable expectation longer-term.
PARTIAL BUY
Will have to move another $1 or $2 before it sees any resistance. Thinks it can reach $10. Use $6.70 as a Stop.
COMMENT
Correction. Guest confused this with Newalta (NAL.UN-T) and stated they had converted to a corporation. This was incorrect and company has stated they they have no intention of converting to a corporation at this time. Sorry.
BUY
This would be among his core holdings in the energy trust space. Has held in fairly well on a relative basis. Q3 results were quite in line with his expectations. Thinks the distribution is safe.
HOLD
Very conservatively managed. Low payout ratio relative to its peers. Very clean balance sheet.
SELL
Just Said "Sell"
BUY
An excellent trust. Good balance sheet. Hiccup in the 1st quarter but has come on strong. Conservative payout ratio. Starting to expand geographically. One of the better managed trusts.
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