Raging River Exploration (RRX.TO)

(A Top Pick Oct 25/12. Up 151.15%.) Feels this has got pushed to the point where all the potential acquirers can’t afford to buy it based on the valuation.

(Market Call Minute) Viking oil producer. Made a recent acquisition and is growing nicely and has excellent net backs at these oil prices.

Thinks they will have 40% cash flow growth in 2014. You don’t find growth like this very often. Management has done a great job. Looking for relatively easy growth. They continue to steadily build out drilling inventory.

(A Top Pick Oct 25/12. Up 105%.) Management are pros at starting up small companies in areas where the big guys are playing, consolidating the assets. Could be a takeover target.

Has done incredibly well. If you own, she would take some profits but this has always been a takeout play and the economics have been fantastic so she would go for the longer ride on the balance. They have a lot of drilling inventory. So it is not a 1 or 2 year story. The story will continue to do well. Technicals and valuations are topping their peers so she would take some profits. (Host Comment: 85% of the street has a Buy recommendation and the rest have a Hold. Consensus is north of $6 in the next 12 months.)

Has a management team that is always delivering and is very profitable.

(Market Call Minute) Keep increasing guidance. Set up to sell the company. Core holding without issues.

One of the best run junior light oil companies in Canada. Has never owned because it has always been expensive but has always been able to maintain a premium multiple. Trading at around 6.5X on a forward basis.

(Market Call Minute.) Great, small company. Likely to be sold or turned into a dividend company at some point next year. There is probably 30%-40% upside. Too expensive for him.

Oil gas company in the Dogland (?) area so they focus on Viking oil. Producible 5300 barrels per day. Have excellent net backs so generate great cash flows. Feels the Viking area is a prime area. Thinks they will benefit from all the activity there.

Had a fairly big run recently and is fairly priced today as it was in Oct-Nov. Continue to execute superbly well on production. Their net-backs are some of the largest in the industry. Rock solid balance sheet. This management team has a track record of growing to 5000-7000 barrels a day and then tend to sell. Whitecap Resources (WCP-T) would be a likely acquirer.

Balance sheet is in phenomenal shape. One of the best financed junior oil company. Management has a good track record of starting up at about 500 barrels a day and selling at 5000 barrels a day. Good acquisition target.

Junior oil and gas company. CEO has sold his previous two companies to Crescent Point. He has the best wells in the Viking play. The risk is more of a timing issue.