Pengrowth Energy (PGF.TO)

Energy stock. They do well as you get to the end of January. We are seeing early signs of the stock trying to bottom. It has been under tax loss selling pressure. Watch for a base pattern, for it to get above it’s 20 day moving average and to get above its trading range and outperform the TSE and that is the time to buy it.

Pays a nice dividend, but they keep cutting it back. Have a heavy debt level but they make money. Could be a recovery play but he is a bit afraid of the debt that they have.

Late husband bought 15 years ago. Should she sell? Be very careful. You have a unique situation. 15 years ago there was no deemed disposition on date of death, then you very likely have a zero cost base. A portion of the distributions that have been paid over the 15 years are return of capital, which is used to reduce cost base. You may end up in a bit of a tax pickle. Get some good tax advice to find out what your true position is.

Right now there is no impetus to buy this stock. If it started to move up, he would be more inclined. If it breaks the downtrend, there will probably be resistance at about $6 and then at $7.

(Market Call Minute.) At the current price, they have a lot of reserves and the yield is there.

Main fear on this was that the dividend was going to get cut. At the moment they say they can keep it at current levels. He only has one account holding this company. Expect there will be tax loss selling so delay any purchases at this time.

Company with flat production growth and levered balance sheet. Spending a lot on projects that won’t add to cash flow until 2015. People have to question the dividend. 9.5% yield.

Had some problems lately and people are worried about sustainability of their payout and it has been cut a couple of times in the last year. They were largely exposed to Nat. gas as well. They have stubbed their toe a few times and are in the penalty box. You can find the alternatives in the oil patch that maybe have not had the same kind of problems.

Unlike Penn West (PWT-T), there is more clarity of sustainability for the yield. With their asset sales, their effective payout ratio next year should be about 138%. That is below the peer group average of 150%. Trading at a really low valuation of around 6X 2013 EV to discounted adjusted cash flow. Peers are at around 9X or 9.25X. You get paid to wait for this prolific potential of future growth. Yield of 8.4%.

This one didn’t really participate, which isn’t good. If you don’t see a participation taking place when all the other oil stocks are moving up, that is not a good thing.

(Market Call Minute.) Not his favourite.

This has really had a tough time and he did reduce his position. Has been tending to favour Baytex (BTE-T) and Crescent Point (CPG-T) in this space and Trilogy (TET-T) as a play on future gas prices increases.

Production numbers have not been that great lately. Have cut their distribution. Believes there is some underlying value here. Management has done a fairly good job over the last number of years and have good credibility on the street. 7.3% yield which he thinks is fairly safe.

Going forward, he feels they are going to focus more on light oils and liquids. Have got good properties. Feels their payout is manageable and are just suffering through a soft period.

(Market Call Minute.) Paying out too much money. A lot of longer-term projects. Should not be paying such a big dividend.