Talisman Mining Ltd (TLM.TO)

He is neutral to negative on this story. Management is doing a good job but the problem is, it is going to take a long time to sort through the big pile of assets that they have. He just doesn’t see that there is going to be a catalytic event to spark the stock to move upwards. 2.2% dividend yield.

(A Top Pick October 22/12. Up 3.11%.) People are becoming aware of the tremendous asset value in this company.

For a long, long term hold, this company is going to do all right. Have great properties. They are in the gas area and it is very hard to make reasonable money in the natural gas area in North America. It is going to be hard for a number of years. They need a nice cold winter and a good economic recovery to bring more industrial users in.

Oil companies have not been a productive place to be this year. Companies doing well have a very low finding cost. He is focused on companies like that. News this week on TLM could be a near term catalyst but he does not invest for a particular catalyst. He likes a good business that then gets better. He has not added any weight here.

It’s a sign of the times that US investors are finally seeing some of the opportunities in Canadian energy names. This has a bunch of assets globally, including Canada with their Duvernay/Montney along with the UK North sea. The prize is the Southeast Asian assets that they have. If this goes, it will go at North of $15.

Has been a relatively cheap company for many, many years. Breakup story has been talked about often as to whether or not value for shareholders can be created. He will be looking at this to see what the breakup value is and if there is any value for him.

There has been a long base building going back to the beginning of 2012. It looks like a breakout has occurred just recently. Volume has been quite strong lately. If it breaks through to a 52-week high, he would be a Buyer.

(A Top Pick August 29/12. Down 16.12%.) Believes that the company is now being managed and restructured in order to sell it in whole or in part. Doesn’t think this will be an existing entity on its own in a few years. If you own continue to Hold. Feels the downside is limited.

If you are looking for a large cap trade, he would use Canadian National Resources (CNQ-T) or Encana (ECA-T) over this. The trouble he has with this company is that it is still trading at an in-line multiple relative to its peers. Also, it is both international and domestic making it a bit more cumbersome for a potential buyer.

(A Top Pick May 24/12. Up 10.19%.) New management and they are going through the portfolio. Reported earnings which were in line. Doing well in Canada, US and Asia but North Sea is a problem for them. They are trying to sell assets like everybody else.

(A Top Pick July 27/12. Down 5.12%.) Believes they are trying to turn this company around in order to sell it. If they are unsuccessful in turning it around, he still believes it is going to be sold. Feels the downside, because of this, is fairly limited.

This has gone through many makeovers. Every couple of years they shuffle assets and it never makes very much difference with the stock which has been in the doldrums for a very long time. The mix of assets that they hold just seems to not really be great. Management doesn’t seem to be able to get too much out of it.

(Market Call Minute.) Sell or Short. There is an activist element to it, but if that doesn’t come to pass it’s trading at one of the highest multiples of any senior in Canada with poorer quality assets.

(Market Call Minute.) He owns but doesn’t want to own it. Trades at an EV to discounted cash flow (?).

Has an excellent diversified set of assets globally, including Southeast Asia, UK North Sea and in the US. However, in the past they have been challenged with some of their production and have had to bring in new management. It’s been telegraphed to the market that unless they get value out of their assets, the company will eventually get sold.