Peyto Exploration & Develop. (PEY.TO)

He thinks natural gas will be the energy of the future. He is not an energy expert. He has gone with Peyto. Consider taking small positions when there are big market down days. But they must be good companies that will survive. 7 out of 10 of these companies may go under. Think of them as call options.

They produce 96% natural gas, trying to diversify. They're the lowest-cost operator in North America, but drilling is uneconimical now. LNG is a long way off. Avoid this.

Natural gas is a dirty word today. As a contrarian, he likes the yield but wonders if it is sustainable. They have a good management team. At some point there will be demand for Canadian natural gas – west coast LNG could be a catalyst. He thinks there are other energy names, but he continues to watch it. Yield 6.8%.

Gas is down, and the stock has slid from $30 to $10. They have a good long-term track record, so investigate why there was such a slide (it wasn't just the gas price). Now could be an entry point.

Definitely would consider it. $25 target. Cheap valuation. If you own it, average down. Sustainable 6.6% yield. Now is a great entry point.

This company is well managed. It is a low cost operator. Its price has come down enormously. Its dividend has been cut, but it offers a 72 cent dividend on a price (on day of interview) of $10.78. The company’s problem is its debt load, which has been rising. It is now $1.285 billion, up from $1.07, against $1.72 billion in equity. It is not good to have rising debt in a declining commodity market. Book value is $10.44. If he is right that oil prices will come down, the stock could go down significantly further, past $8 or beyond. At $8, the yield would be fabulous. He doesn’t cover the name because of the balance sheet issues.

It had to do some tough things a couple of weeks ago. They cut the dividend and the cap-X program also. Book value was $10.12 at the end of Q3. It could go down given problems in the sector.