Total SA (TOT)

Assets are very dispersed, so they have lower cost production. The disadvantage with this company is that growth is not great. Dividend is attractive, but you are not getting any tax benefit.

One of those very undervalued global integrated oil/gas companies with huge upside. Companies like this are throwing off a 6% dividend and you are going to lose 15% on withholding, so you will end up with a 5% dividend. You are going to have dividend growth covering your dividend. Also, this type of company will be an acquirer of troubled oil/gas companies.

He sees double-digit return for the stock, annualized over the next 5 years. This company is extremely well-positioned. Already paying a healthy 5.16% dividend and he sees significant dividend growth along with share buybacks. They are coming to the end of a large capital expenditure cycle, at which point we are going to start seeing expenditures drop and free cash flow rising. A cheap stock.

Likes this. One of the best, if not the best, European integrated oil company. Very strong management. Fully integrated oil company, so you are getting exposure from upstream all the way to the downstream.

Prefers Canadian oil and gas companies. Prefers SU-T. Canada has a competitive advantage in oil and gas.

What are the advantages in owning a large market cap company like this? These are not expensive stocks. Have great dividend yields and throw off lots of cash, so they are able to constantly increase their dividend. There are also able to be diversified geographically On the other hand, it takes a lot more to move the needle. There are involved in much larger projects.

(A Top Pick Sept 11/12. Up 18.61%.) A truly global energy player with huge exploration in Africa in the outlying regions where you have to have the scale to explore. Also, natural gas is much more expensive in Europe than it is in North America and they are a big natural gas player too. Very cheap valuation at about 9X forward earnings. Over 5% dividend.

(Top Pick Sep 11/12, Down 3.16%) Getting a 6% dividend while he waits. They are big in Africa. He thinks there is really good upside and it is a long term hold.

(A Top Pick Sept 11/12. Down 0.22%.) Thinks this will be in the high $50-low $60 in the next 12 months. Natural gas prices are much higher outside of North America. Has a good production growth profile.

Dividend is fine and balance sheet is reasonable, however, it is situated in France where the environment of austerity, tax regimes and frontline government is definitely not pro-business. However, recent political developments have suggested that it is going to be less of a problem moving forward. He would prefer Statoil (STO-N) which carries a good dividend and is a little bit more aggressive in exploration play, or Royal Dutch Shell (RDS.A-N) which hasn’t actually grown its dividend for a long period of time and has a very strong balance sheet and some growth projects coming online. (See Top Picks)

Dividend is in the 5.5% range but is easily covered by earnings with still lots of room for growth. Earning well in excess of their dividend. No debt issue and they still have room for growth.

Likes this equally well as Royal Dutch Shell (RDS.A-N), which he owns.

You have to look at whether there is enough cash flow to know if there is a way to sustain the dividend. He doesn’t do that analysis. WTI should be $75-$100 next year. That’s the landscape.

Convertible bonds/debt. 5-3/4% 2016 with a 53% premium. 13 years to recover the premium so don't buy them now, go for the common if you like the company.

Had a little oil leak problem in the North Sea earlier in the year but that is now fixed. Tremendous global assets. Redefined where they want to be over the next couple of years. Big presence in European natural gas. Looking to see big dividend growth. The market has been under pricing this company. Dividend should be closer to 3.5%.