Parex Resources Inc. (PXT.TO)

Management recently did a strategic review of the company, effectively putting itself up for sale. He bought into it around $19 per share. He expects this could be an acquisition target. He likes the exposure to world market prices for oil. He thinks there is upside to $25.

A Colombian oil producer that they own currently. The company recently put itself up for sale. He thinks this company feels some of the assets may have reached a maturity point, especially the Colombian assets. He thinks the company is under-valued by about $2-$3 per share and that is why they continue to hold it.

Big swings in 2014-5, then a downside in 2016, but an overall uptrend since 2014. If energy gets a little momentum, Parex will shoot ahead. It's one of the best in energy. He sold it this spring and wants to buy it back.

Liked it for a long time. Started buying 7 years ago. Unusual problem of generate too much cash flow and not having the opportunity to allocate that cash flow within Colombia where they operate. (Analysts’ price target is $31.94)

He is a new shareholder in this. Normally he would not be involved with the geopolitical risks of Colombia, but the recent announcement of a strategic review of the company has him interested. The fall to today’s price, it looks much more reasonably valued. This could be a $30 stock, especially with its exposure to Brent oil pricing.

He has a $31 target. Exploration disappointed; results were soft. So, be cautious with this.

It has been a large position in their portfolio. A great management team that has grown the volume from under 10,000 boed to 45,000 boed. They have decided to look for a strategic exit of the Colombia assets and this may have spooked investors. He does not expect management to do anything crazy. He continues to recommend holding it, expecting it to sustain $18.

It was the darling of the energy sector and most of their production is outside of Canada. He will have to re-look at it with today's move. He thinks he will most likely end up eventually buying it. Don’t rush into it.

Is a midsize, rapidly growing Canadian based but Columbia operating energy producer. Has some of the highest operating profits in the oil patch. There are 2 pipelines that allow them to get their product to tide water. It has grown quickly. It has quadrupled cash flow and gives a 26% return on shareholders’ equity. The catalyst has opened up a strategic review process and effectively has put the company up for sale so could see this company sold to a larger player. (Analysts’ price target is $ 32.55)

Trying to monetize their existing producing assets and become an exploration company. Is there a buyer for these assets in Columbia? People have been selling the stock because this is a very significant shift.

(A Top Pick July 6/17 - Up 72%.) He still likes it. Oil has come up since last year and also the company has managed the budget wisely. Most business is done in Colombia. A good country to do business for oil. Stable. (Analysts’ price target is $31.95)

He would buy it right here right now. They have credible plans through drilling inventory to grow production. In Columbia they track international pricing more closely. Canada has been a travesty in terms of business in the competitive environment and getting product to market. We are captive to another country – The US. Colombia has plenty of pipeline access. Two weeks ago Colombia elected a pro business leader.

A report was published Monday night where they reported a couple of dry holes for the first time in a long time. They operate in Colombia. He'd buy at these levels. It's been a tremendous success story. They've grown from producing 5,000 to 45,000 barrels a day over the past five years. The new right-wing government in Colombia will be friendly to drilling companies. This is the premier Canadian oil and gas investment.

A producer of oil in Colombia, which lacks the takeaway isses that plague western Canada. PXT has tripled its production over five years. It carries no debt and has started share buybacks. It grew earnings by 64% year over year. (Analysts' price target $28.73)

This is his second-biggest equity position.It is tremendously well run, has had tremendous partnerships. They get Brent pricing