Jason Donville Total Energy Services Inc TOT-T BUY Oct 03, 2012

Likes it and the team. Has been able to grow earnings. Done well in terms of pricing power. Started to gain some traction and is a larger holdings of his in the energy sector.

Convertibles? First of all, these are convertible into the equity of the company sold you want to have a good company. You also want a conversion premium that is not too expensive. In this case, these bonds have a conversion premium of over 80%. You advantage is about 3% per year which means it will be a long time before the premium is ever paid off and they mature in 2016.

Operate in 3 areas, contract drilling, rentals and transport in Canada, US and Australia. In some good areas. 1.4% dividend yield. $16 in one year.

Seems to be range bound in the $13-$15 range. Numbers look good. ROE remains strong so he is just going to be patient. Great long-term track record.

(A Top Pick March 5/12. Down 17.41%.) Oil/gas services have just kind of gone sideways over that period. ROE is still high. You just have to be patient. There is a bit is cyclicality.

Likes the company, but it is going sideways and he felt there was just as much chance that it could go to $12 as they could go to $16. Because of this, he recently sold his position. He is not overly bullish right now on anything on the natural resource side including the energy side.

Great company and well managed. Within the oil/gas services names though, it is not his favourite name. He would prefer Pulse Seismic (PSD-T) or Horizon North (HNL-T). Likes Pulse Seismic because they lever technology very effectively in the great cash flowing company.

(Market Call Minute) Not his top energy services name but this one has a great management team.

Well-run company. Always trades at a bit of a discount to the sector because of the nature of the business. Not a bad one to get into.