John O'Connell, CFAParamount ResourcesPOU.TOPAST TOP PICKJan 21, 2014

It is a little off the radar screen. Has great assets, production and management team.

It's run up the last two years to previous highs, but will it fall back? Doesn't see the incentive to buy it now, but it breaks current levels, he would buy. You should trim, taking profits.

Amazing management. The only issue is that POU is mostly natural gas which is landlocked in Canada. Nat gas prices in Canada are weak. Is not convinced he'd own a lot of nat gas in Canada in this part of the cycle.

Likes, but doesn't make the cut on taking advantage of the massive opportunity today. Net cash on balance sheet. Prefers names with a bit more oil to them, and this one is 50/50. He's pretty negative on Canadian natural gas pricing. Great CEO.

Intermediate gas producer. Recently sold assets to raise $$ to deploy into operations. Good operational momentum, high impact assets. Very strong financial liquidity. High growth. Canadian gas prices have been weak, expected to improve in winter as LNG Canada comes on.

It is a good company with high oil and gas prices being the impetus. Crude oil could surprise to the upside.
Editor's Note: There was a substantial drop in the stock price recently.

It is a good value stock. It explores and develops conventional oil and gas. It is too volatile for them even though it outperformed the last quarter. You could trim back and wait for a more favourable price target. It is a mix of buy, hold and sell.

Sold assets, which crystallized massive value. This is their forte. Some of that windfall will make its way back to shareholders. You have to believe in their vision. He sold too early.

Owns small amount of shares. CEO very good at finding oil. Company has large amount of insider ownership. Contrarian leadership. Currently trading at discount to NAV. Very strong dividend yield, building cash flow and buying back shares. Good value in other energy names, but is a quality company. 

Likes. Lack of liquidity, as so much of the family owns it. Good management, great assets. Next to NVA, offers highest leverage to increasing nat gas prices in 2025.

A strong balance sheet and a safe, nice dividend. Cheap, trading slightly above its book value. Sees a lot of upside.

His first natural gas recommendation in ages. It will be a long, strategic holding. Based on $4 natural gas next year, this will be the least expensive North American stock. The CEO owns 45% of the company and he's methodically about M&A. Without recent acquisitions, they'd be debt free. He hopes they buy a countercyclical buy in gas. Maybe they can. Are not buying back shares, but growing production 10% annually. Pays a 4% dividend. Projects 72% upside.

Good management and track record. They focus on LNG in the deep basin of Alberta. He's bullish energy. Are in the middle of a parabolic move. Benefits from nat gas paving the energy transition into renewables. The new LNG terminal can ship Canadian LNG internationally.

Very smart CEO. Hunting for an acquisition. Until that happens, he prefers other names. Trades at 3x at $80 oil. Only 7% free cashflow yield, as they are pursuing growth. Not the most liquid name, tough to buy.

Also owns drilling and service rig business.
Debt free which is good.
Has been buying shares.
Excellent company with strong management team.
Lots of insider ownership.