Petroleo Bras Sa Petro (PBR-N)

He's worried about PBR, because Chile just nationalized all its lithium businesses.

Given its yield and growth rate, you'd buy this, but PBR is in Brazil and that matters. Can't trust it at all.

She is light in oil, because the US shale producers have come back a lot faster in terms of production. That is more than offsetting whatever OPEC is doing on the cutting side. This company is very inexpensive, and has great assets. Management has laid out a plan to divest non-core assets, pay down some debt and right size their balance sheet. If you have a long-term time horizon, this is a good risk/reward. There is some near-term noise around Brazil, which will be a bit of a headwind.

You can’t really talk about this without talking about Brazilian politics. This company has very, very extensive resources. Unfortunately, they also have a lot of debt. A very levered play on oil prices, and a small move in oil will result in a big move in this company.

(A Top Pick Sept 26/15. Down 130.15%.) He closed this off about a month after he had recommended it, because oil started to ramp up. The company had an extremely high debt load and oil prices looked under pressure. Also, there was a corruption scandal going on. The company has slashed their CapX to the bone and were able to keep their free cash flow on side. The story has improved materially.

SHORT. It is a mess. It is going to be negative free cash flow for another 4 years. Cash will go to servicing bond holders. There is also a corruption scandal and there are also the low oil prices. He thinks it will go down to a dollar.

Prefers Canadian oil companies because he thinks the Canadian oil complex is one of the best in the world. This company has a lot of deep oil. Doesn't know if, with the horizontal drilling and the shale plays, if that oil can come on shore or not, because their cost of production is very high.