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UTS Energy (UTS.TO)

PAST TOP PICK
(A Top Pick March 13/06. Down 42.6%.) The drop in the price had to do with the fear of cost overruns, environmental concerns and collapsing oil prices. Great buy here if you have a 2 to 3 year time horizon.
BUY
Oil sands stock. Have leases with great partners. The real problem is that no one has a handle on costs. Cost per barrel has continued to escalate. If you can buy under $4 and are willing to sit for a while, it’s not a bad stock. At $5 or $6, it’s getting ahead of itself.
STRONG BUY
Suffered along with other oil sands stocks on concerns on environment and cost overruns. Given the shrewd land acquisitions they have made recently with Teck Cominco (TCK.B-T), 70% of their holdings are outside the Fort Hills project. Great story going forward.
COMMENT
Has a large lease in the oil sands. Need billions of dollars in order to develop it. Has been very high because of takeover expectations. At a fair price right now.
DON'T BUY
Probably not in a great position to be taken over because Petro Canada (PCA-T) and Teck Cominco (TCK.B-T) are already involved.
COMMENT
Has no earnings or cash flow. Partnered with Petro Canada (PCA-T) and Teck Cominco (TCK.B-T) to take Fort Hills forward. Extremely leveraged to the price of oil. Costs are going up. Looks cheap, IF, oil prices are $60-$70 when it comes on stream.
PAST TOP PICK
(A Top Pick Feb 20/06. Down 39.9%.) Increasing costs put a lid on all oil sands stocks. Also, there were environmental concerns so everything in that area has been marked down. He is an aggressive buyer at this price. Thinks the company will be acquired this year.
DON'T BUY
In the Fort MacMurray area and has some good partners. A long way away from production. A lot of money has to be put into this. Would prefer the big caps right now, which are at reasonable prices.
BUY
Feels that tar sands stocks such as UTS (UTS-T), Canadian Oil Sands (COS.UN-T) and Western Oil Sands (WTO-T) will all do well. If we get to a $70 commodity prices, they will go back to all-time highs.
STRONG BUY
Fell out of favour because of concerns of oil sands entities, cost overruns, environmental concerns, etc. Announced that they and their partners Teck Cominco (TCK.B-T) just acquired 18 new leases.
WEAK BUY
If an international company wants to own oil that is geographically safe, there is not much to buy. Expect more takeovers in 2007. He prefers companies that are already producing such as Opti (OPC-T), Western Oil Sands (WTO-T), Athabascan Oil Sands
BUY
Could be an acquisition candidate here. One of the solid remaining mining/oil sands development plays.
BUY
One of his favourites. 70% of their holdings in the oil sands are outside the Fort Hills project, so regardless of the delays that Fort Hill might encounter, this could end up as a totally separate project..
COMMENT
Probably going to rally. Sector has been beaten up. Wouldn’t get too wrapped up in it.
DON'T BUY
Doesn’t like this company. More speculative than an investment. If you want to be in the oil sands, be in an existing one that understands the business.
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