Whitecap Resources (WCP.TO)

It has stalled out. Issue is the going to market to finance acquisitions. Well managed and he likes their commodity focus, but sentiment has changed because of equity issues.

(A Top Pick Sept 11/12. Up 83.21%.) Took a little bit off the table, but continues to trade around it. A core position. Strong management.

(Market Call Minute.) Have done a good job and paying a good dividend. Getting big and will start becoming more of a problem.

Good management. Strong production growth. Made a lot of acquisitions recently. Financed these through raising equities, which sometimes slows down the growth of the equity but in this case it hasn’t. Payout ratio is strong. Yield is strong. The risk with this is the energy sector. Oil has rolled over a little bit recently. With the Iran nuclear agreement in place, maybe people expect OPEC production to come on. Feels this one is a winner in the sector. 4.9% dividend yield.

(Top Pick Oct 9/12, Up 59.74%) Continues to be a core holding, healthy dividend. Buying companies on the cheap. Continue to get oil out of the ground from these companies. Down right now because of oil but thinks it will come back.

This has been moving in a nice uptrend and there is no sign of it breaking down through. It is now touching the trend line, which is an ideal place to Buy a stock. 5.2% dividend yield.

Thinks it will continue to do well. They will get multiple expansion as people get comfortable with their execution. They should be generating free cash flow shortly. Conservative balance sheet. Every employee in the company has to own stock. Differentials are not good for Canadian companies. Keystone is becoming less and less of an issue as we do more and more oil by rail.

In terms of the slow growth dividend model, he really likes what this company is doing right now. Have just increased their forecast over the next year or so. Well managed. Good mix of assets. Dividend is fairly secure.

(A Top Pick Oct 9/12. Up 58.99%.)

Has done so well that it has almost drifted back up again to its usual long-term high in price to book terms. There has been virtually no growth in the balance sheet for some period of time. He would guess the dividend is what is driving the company. It could go a little bit further than here, maybe a couple of dollars.

(A Top Pick September 19/12. Up 66.28%.) Did a perfect job of commissioning the market for its conversion into a dividend company, put together a stable of assets that fit that and using the currency that the market gave them to make accretive acquisitions from Barrick. Could see this getting to $14.

(Market Call Minute.) One of the juniors that has turned itself into a part yield/part growth play. Has already done well.

Energy exposure with good yield. 5.6% yield. 65% oil and one of his favourites.

He has a short list of Junior companies that have gone into paying dividends. If they stumble, the stock market really penalizes them. It seems this one has the assets to successfully pay the dividends. Lower decline rate and better efficiency in the wells. The only risk is that they are relatively new and have to execute on the drilling side. Over 5% dividend yield.

(Market Call Minute)