Spartan Energy Corp (SPE.TO)

Owns this in his growth funds. This is one of the smaller, growthier names. These are ones that have great access to capital. The management team that has done this all before. Thinks this will continue to do very well.

This is a “sleep easy” small cap growth story. Management owns 13%. In one of the best areas of oil production in Southeast Saskatchewan. Have consistently been drilling wells that have paybacks of less than a year. Because of their size, they can still make smaller acquisitions that are too big for larger companies. Their ability to add accretively is much higher than some others. By his estimation, they will be growing production next year by 49%, the highest of any oil company in Canada, and that is spending only 80% of the cash flow. Typically trades in a band of $3.80 and $4.20. They report in about 2 weeks, but doesn’t know if there will be any catalysts to get people really excited.

Seasonality? Some energy stocks have had a good move and others have already had their correction. This one had a huge move and then a correction and then a drastic move and then should have another correction. It might re-test previous lows.

Sell Crew Energy (CR-T) to Buy Spartan (SPE-T)? Crew is a great company. One of the issues is what they are going to do with their oil property in southeast Alberta, so he wouldn’t be too hasty on selling it. However, if you have any other capital available, he would recommend buying this. A very dynamic, fast-growing company with a competent management team. In some of the best economic plays in the Cardium in Saskatchewan and Alberta. Their growth curve is going to be very, very sharp. Have great capital in the market so the stock is very well valued. Looking for them to do more acquisitions and change their production profile. They are going to be over 10,000 barrels a day before too long.

Loves the group and wants to get back in. There is a chance that there might be a month or 3 of lack of catalysts so that the price comes off a little bit. Then she would look to get back into it. Light oil focused, and is one of the top guys in the sector.

Stock had a huge move recently, but is now cooling down. Trend is still up which is good. Seasonality is positive as we get into late this month. Trading below its 20 day moving average, which is bad. However, its relative strength, relative to the TSE and S&P 500, is still positive. The preferred strategy is to wait for the stock to stabilize later this month, and look for some positive technical action. That will be an opportunity to add to the position.

A good size intermediate player in the southeast Saskatchewan region. Recently made 2 acquisitions, and raised equity to finance it. Balance sheet is in superb shape with decimal 0.1 debt to cash flow. They should exit 2014 with 1.5 barrels. Good growth in production.

A rapidly growing oil company, predominantly operating in SE Saskatchewan. Very, very rapid production growth. Have been able to buy a lot of oil/gas assets from companies that were paying out large dividends, and couldn’t afford to drill. Very high net backs. Balance sheet is spectacularly in very good shape. Thinks somebody will eventually Buy the company.

The price looks good after its little bit of a pullback. $3.60 seems to be a good level of support. You want to make sure it stays above the support line that runs from March to the current time. Right now there could be some consolidation.

Good management track record. They have made money in the past. He is a large shareholder. It is a high growth, Saskatchewan company with assets that throw off a lot of cash flow. Thinks they will grow 20-30% while continuing to do accretive acquisitions.

This is getting to the size where it will be moving to the TSX pretty soon. It is really up to the company when they want to go forward with that. He would take a look at this one on a pullback.

He has recommended in the past. Huge winner then he sold it at $4.35. He expected a correction, which we had and then he started re-buying. Stick this away for the long term now.

Very experienced management team. In previous iterations, they have made shareholders a lot of money. An example of what you can do if you have a strong management team who sees opportunities and has an ability to raise capital at attractive prices to buy assets from companies that are stuck paying dividends and can’t develop good quality fields that they bought. Growing their production at a very disciplined rate.

This company has been rejuvenated a few times. This is management’s 3^rd Spartan. (They sold the previous 2.) Has pulled back 15% or so over the last 2-3 weeks. Good entry point.

Has been looking at this. Management team has a history of doing well. Numbers look very strong, but there are a number of stocks in the oil/gas patch that look very interesting. (See Top Picks.)