Painted Pony Energy (PONY.TO)

This is an opportune time to pick some more stock here. They may get taken out in the future. He would not sell.

If you are going to look at natural gas, look at the really low cost producers with really big resources with a history of low finding costs. He would prefer to look at something like Peyto (PEY-T), a very low cost deep basin producer. Stock is producing the way it should. Or you could look at Vermilion (VET-T), although it is oil and gas, but pays a 4.5% yield.

(Top Pick Jul. 19/12, Down 2.76%) Only junior left in the area but not convinced on the timetable for an ultimate take-out.

(Market Call Minute.) Thinks there is a very large institutional seller that is weighing on the name. Once they are cleared this should go up. Nothing fundamental has changed on the company. Very healthy balance sheet.

She has owned this for a while. It may be a takeover in the next 3=5 years or sooner. It is a good conservative management team which has built up a good parcel of land and will be rewarded for it.

Company thinks they can essentially quintuple production over the next 5 years using internally generated cash flow. Management has done a fantastic job of aggregating Montney acreage in exactly the right postal code. West coast LNG is a longer-term theme. Pegging a theme on a takeout is absolutely impossible so they are maintaining a strong enough balance sheet so that a takeout is not a necessary end.

(Market Call Minute) Considering exposure to Nat Gas and location and the movement to LNG, it is a buy.

The trend is down and has been for a while. It is the case with a lot of oils. We look at comparative relative strength. If it was not doing well when the market was going up, what do you expect it to do when the market is correcting.

Takeover rumours are still alive. Right now though, many companies are not been rewarded for growth so why bother growing through acquisition. You actually may be waiting a little while but feels this name is not bad.

(A Top Pick Jan 24/12. Up 18.89%.) Has done well because they are sitting in the right place. Acreage is immediately offsetting many of the West Coast LNG facilities. There are multiple possible buyers. You will have to be patient because timing M&A is virtually impossible. Sees 50% or more upside from current prices.

Widely rumoured as a takeover candidate. Well managed and has a good resource base. Relatively solid balance sheet. Good production growth. Good management.

(A Top Pick Jan 24/12. Up 19.35%.) One of the more obvious takeout candidates, hopefully this year. Did a $170 million financing in December and bought some assets that was directly opposite their existing properties.

Has been an absolute stellar performer. Success started in the Saskatchewan oil plays and has now migrated up into Northeast BC. Market pays full value for this company as it sits today. To own it today you want to have comfort in the Northeast BC Montney gas potential that exists in the company. Good management.

Company has always done fairly well operationally and with cash flow generation. Great land package. Somewhat disappointed that they did a recent financing of about $170 million. Tough environment for gas companies, which is their main focus. $13-$14 could be a reasonable target.

With the takeover of Progress Energy (PRQ-T), Monday is going to be a great day for this stock. This is clearly about West Coast LNG, which is a huge theme going forward for Canada. This stock is the next most logical takeout candidate to provide feedstock for one of the eventual terminals that is going to be built. It’s not a question of “if” but “when” and 2013 could be that time period. Just acquired the Kobes assets from Crew Energy (CR-T). Believes this will move upward in the high teens to $20.