Tourmaline Oil Corp (TOU.TO)

A core position. One of the hardest things to do in investing is to stay with a winning position. We are in a great market right now for energy. He doesn’t sell in May and go away. Believes there is upside in this group. Great growth and great geographical location and a good dividend. It might take a breather in here. He would continue to buy.

(Market Call Minute) Best exposure to nat gas. Great management team.

(Top Pick Apr 17/13, Up 49.31%) Beneficiary of extraordinary success through the drill bit and strength in Canadian Nat Gas pricing. They are 50% exposed and the rest is hedged. More cash flow means more money to spend and it will lead to a higher multiple. Great management team with heavy ownership and the commodity is helping them out now as well.

Very, very good performance. Set $51 as an exit price. Fundamentally it has a stronger production per share growth than a lot of its peers. Technically it looks very, very strong.

Cash flow is going to double this year. That is huge. They have found new ways to tweak old reservoirs through pad drilling, new science, and fracking. They are targeting formations where there is a lot of condensate which is very valuable. This company has a growing production from condensate. Only 10 times cash flow. It is cheap.

Set a new 52 week high during the day. His largest weighting. Bought on the strength of the management team. Could be a takeout candidate somewhere down the road. Tremendous growth ahead of it still.

(Top Pick Mar 28/13, Up 32.08%) You can`t beat the management. They just don`t seem to know how to do wrong. Grown to over 100,000 barrels a day. The president does not receive a salary.

(Top Pick Mar 20’13, Up 33.28%) The oil price plus Putin have benefited it. They are one of the best.

Looking at it carefully. They are a leader. Have terrific properties. Charlie Lake has 1200 drilling locations. Sees production growth. 15%+ capital gain expected, but no dividend.

(Market Call Minute.) The problem with this is that the earnings forecasts have been slipping and it is not particularly cheap.

One of his largest holdings. If you own, don’t sell your core position until something structurally changes with the company from an earnings/production operational update issue. He has trimmed along the way just to keep his portfolio percentages intact, but is quite long on the stock and continues to like it. If you don’t own, he would recommend buying it as one of your key names in your basket of natural gas exposure in Canada. He could see 15%-20% upside this year. Tailwind on this story is not only their operational excellence, but also the natural gas price.

(A Top Pick April 17/13. Up 33.45%.) Even though there seems to be a weakness in the commodity of natural gas, you can still make money in a company that produces the commodity. This is heavily weighted towards natural gas. What he likes is that you are buying into the best management team in the business when it comes to natural gas and sitting on some of the best acreage in Canada. Their production rate far exceeds the national average. Thinks they will be able to grow production by 70% this year and upwards of 35% in 2015. He has the stock valued at roughly 6.7X next year’s enterprise value cash flow. Historically this company trades at about 8. As we get closer to year end, people will realize just how cheap it is and he is expecting it to be a $60 stock

Likes it and if he was going to buy another gas stock it would be this one. A bit pricey at this point but on any pullback he would look to own it. Great cash flow growth and production growth.

Premier Nat Gas producer in Canada. Great balance sheet, significant inventory and running room. There were some analyst downgrades, probably just due to valuation. You can reasonably expect this company to increase in value 30% per year.

A great growth business in the natural gas space. If you want to be in this area, you want to be in names that are growing more. This has a great reputation for growth and a great management team and have been executing extremely well.