Tamarack Valley Energy (TVE.TO)

A good mid-cap name. He likes the upside on their Viking assets. They are generating good cash flow, buying back shares, paying down debt. He is looking for even more torque – heavy oil centric companies in particular.

Their volumes continue to grow, especially into light oils in the Viking and Cardium areas. The company’s book value is $3.21 per share. The balance sheet is in good shape, with only 20% debt.

They have done a fabulous job of growing and the debt is minimal. He thinks the company has significant upside potential. There is a bottoming process taking place in oil and it may be some time before it starts to go back up.

(A Top Pick September 28/17 Up 49%) He liked their operations and how they were producing a higher boe/day and became more oily. When Spartan got taken out, it made TVE-T look extremely cheap and the stock rallied aggressively. He thinks some US buyers have entered in now.

Their market cap is below a level to entice large investors. Money is coming into the sector from the US, but this is not a highly ranked one. It is trading at only 3 times cash flow based on $70 oil – normally it trades at 5-6 times.

This was one of his previous Top Picks. It is one of the cheapest oil and gas stocks. Operationally they have beaten expectations the last couple of quarters.

He says this company is trading below book value, when historically it has traded at 2 times book. He still worries about low oil prices and how it impacts next quarterly earnings. He would buy this under $2.

A debt of only $162 million so it trades at a discount to book value. The stock is depressed because of tax loss selling. They have had some spectacular wells. The stock is discounting even more success.

There were in the penalty box for quite some time. They did not structure their acquisition very well. It is now going better than they expected. He really likes that they are in a similar play to another that is perfecting the play in Alberta. The market is not rewarding them for this at present. He thinks they will beat expectations. (Analysts’ target: $3.75).

This is by far the cheapest of his oil/gas holdings and he really likes it. There is a bit of an overhang, because they made an acquisition, which gave them a lot of stock, and there has been some selling going on. This is probably the right time to start a position in some of these names. This is extremely cheap at today’s prices.

He likes this company. A smaller high growth play.

They did a number of acquisitions last year. The stock is now ahead of itself because he thinks they paid too much for their last acquisition.

This one has been a laggard. It has trailed a lot of other oil and gas companies. They did a fantastic job of growing production. They did a good job of cutting down their costs. They are not levered because they have a great balance sheet.

(A Top Pick June 8/15. Up 4.47%.) No longer owns this. It has massively outperformed how oil has done. However, unless they do some wildly accretive acquisitions, it is trading at fair value. He wouldn’t own this today.

(A Top Pick June 12/15. Up 1.54%.) Likes management and the quality of the assets. The balance sheet is good. Have done some exceptional things in getting their costs down and improving efficiencies in their drilling, and have done really well in consolidating their plays. This is still a Buy.