Whitecap Resources (WCP.TO)

39% debt to equity. They have long life assets. Pay a monthly dividend. This could be an interesting story. Book value is $7.79. Would be a buy at less than $8.00

Is a lower risk way to gain access to Canadian light oil. He thinks Canada is now the place to be. Predominantly light oil producer. Stock has been lagging. Sees them having about 80% upside at $80 oil. Safe balance sheet. Current valuation is so low.

One of the better-managed oil companies. Their properties, management and balance sheet are good. It has a lot of potential to come back if prices rise--but this could be a long wait. In energy, you can make money elsewhere such as
Suncor. Ask yourself: how did this stock enhance my portfolio?

Whitecap vs. Tourmaline (TOU-T) Decent multiple, plus bunch of growth potential, pretty good rocks. Whitecap is a more interesting name because of oil weighting, so they’d choose that one.

Stay with it. He is working on analysis of it now. He likes the company and the assets. It has some of the best engineering teams for recovery. You are looking at a potential double over the next 4 to 5 years.

A good bread and butter name to own. There has been a bit of a rally so far this year. The reason energy stocks have gone up in Canada is because US investors are coming into our names because they are seeing few names that don’t have takeaway issues. It is a lower risk name. He sees 4 times forward cash flow, where as it used to be 8. Where we are in oil prices, these names are trading at half their historical multiples, even if you don’t think oil is going up. It's a steady Eddie name. He is looking for more growth and so doesn't own this name.

He bought some on the day of the interview (price $8.65 on interview day). The company sells at 4.4x cash flow and the company offers 8 years of existing cash flow from their current producing fields. He thinks it is financially positioned to make more acquisitions next year.

In terms of technical analysis, a base forms after a stock decline--and this one has. Dropped from a high of $12. Formed a base around $9 for a while last fall. It's forming a new base now with a small upside. A base sees consolidation. WCP has the short-term potential to reach $8.90 when it'll hit resistance. On the downside, $7.40 would be its base and your exit point. Advantage Oil is a better oil stock. WCP is now finding a bottom. A base is 5-10% trading range.

Every single name is at a 52 week or longer low. This is a core holding if you are looking for yield in the energy space. It has a good management team and track record. They take some backlash for M&A activity. He likes it for the long term. You have to put the charts aside.

They are light oil. Their corporate decline rate has dropped. They increased their dividend yield with a recent acquisition. A solid light oil company. (Analysts’ target: $13.00).

This has become the "go to" mid-cap name. They have very good support from a few US institutional investors. They used the downturn to acquire different assets. Has a business model that, for the next couple of years, should allow them to grow at above peer average, pay an above peer average dividend, and maintain a very strong balance sheet.

The chart shows a gentle downtrend channel from the beginning of the year, and it has made a couple of bottoms. Started to find its legs about mid year, went up, came back and tested it again. He would like to see it get above $9.75, in order to get a quick acceleration to about $12, where you are going to start to run into some resistance. This looks reasonably positive. Also, some indicators are starting to turn up. You have some nice tailwinds.

Her view on energy is that it will continue to do well until the Saudi Aramco deal gets done. After that, all bets are off. She is quite happy to own oil stocks until then. This company has a really nice dividend. She has owned this as a defensive name.

He likes this one. It is not in his top 5 but the management team has done a good job. They have good production growth. He would buy at these prices.

(Top Pick Apr 15/16, Up 4.31%) He decided to take a trade on this one in the spring for seasonality reasons. There is no money flow into oil stocks. You are not seeing any new energy ETFs coming out because nobody cares. He only has 3 energy stocks left.