Lorne Steinberg Total SA TOT-N PAST TOP PICK Oct 07, 2013

(A Top Pick Jan 12/16. Up 18.61%.) One of the most conservatively managed oil/gas companies globally. Their refining and marketing benefits from low oil prices. They are making acquisitions when everybody else is forced to sell, setting themselves up for long-term value creation.

There is more upside if oil prices remain where they are. Dividends are extended and should be more than in the 3%-5% range. We just need some stability. The environment is conducive to the stability of prices. This is the time to buy some more.

Royal Dutch Shell (RDS.A-N) or Total (TOT-N)? He prefers Shell. Both companies are so large and diverse that you can’t even call them heavy oil. They are both a bit sleepy and are never going to blow you up, but they don’t move is much as some others.

One of the few oil companies he owns. It is a fully integrated oil company. It has growth. Their downstream and retail businesses are doing well and help modulate their cash flows. (5.3% yield).

Juicy income with the fastest growth in the industry, plus they’re one of the bigger LNG players. Investments years ago are bearing fruit. Gas is growing faster than other energy sources. Like it for short- and long-term. Yield is 4.8%. (Analysts’ price target is $58.16.)

This is a play on global energy. Also, Total is moving rapidly into the renewable space. Dividend yield is 4.6%. They are looking at their business 50 years out. Even though oil consumption is still growing in the present, the long-term future is not there. Total generates huge free cash flow, its balance sheet is better than it has been for 25 years, they will have almost no debt in 3 years and will have huge room to raise the dividend. (Analysts’ price target is $71.16)