Whitecap Resources (WCP.TO)

One of the top Canadian oil producers. It's a victim of a whole sector that investors haven't been interested in. There's potential for a rebound trade in this entire group, and if so, then WCP is definitely one to hold. Wait and see in the next six months and hopefully you will get a pop. Otherwise look at Cardinal Energy.

This is a name that is well held institutionally and in the retail market. There may be some acquisition overhang that will ultimately be beneficial. Management will do small acquisitions, but the big deals are likely done he thinks. This company has an attractive payout ratio (near 80%) and so the dividend should be sustainable. It has been a core holding of theirs for years.

This is a dividend paying stock and sometimes can hold a stock for the dividend. This stock has good support at $7.50. Would hold it and collect the dividend if prepared to allow it to drop to its support. Upside looks to be around $10.00.

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.