Progress Energy Resources Corp (PRQ-T)

(Top Pick Apr 19/12, Up 129.61)

Petronas deal was approved by the government. Feels that for the net benefit of Canada, despite having become such a political issue, it was absolutely the right decision. Capital requirement for oil Sands, tight oil and feedstock for West Coast LNG is absolutely humongous so we need companies like this to come in. There are some concerns that we need to pay special attention to but it was absolutely great and proper decision for the oil patch.

(Market Call Minute) The deal probably goes through.

He thinks the take-over will go through. Canada must build LNG facilities and eventually those who have not taken advantage of being the first mover and if we miss out, then our Nat. gas will be land-locked. The buyer of PRQ has committed to spending billions of dollars. As a country we need this to go through. This is not that strategic of an asset. As a country we need it to go through.

If you are buying at this level, you are looking for the deal to go through and get your $22 and hoping to get it in the next 30-60 days. Nice short-term upside if the deal goes through. If the deal does not go through, he thinks this will trade in the $14-$15 range. There is potential that if this deal gets nixed a new buyer may emerge in the next 12 months. Very tough to speculate.