He stayed away because they went to the states to make acquisitions.  He did not know why the Americans would not already take these assets.  He stays away from it.

When income trusts disappeared, this one found a loop hole where all of their assets need to be in the US.  There may be better oil plays out there.  36% yield.  It tells you that you probably don’t want to be in this stock.

A cross-border trust that was set up because they can take advantage of the SIFT rules. Their Texas assets are pretty boring, but are solid low decline. Because of their location, they avoid transportation problems. Doesn’t own this as a growth stock but as a high paying sustainable dividend model. They are going to do small acquisitions from time to time that will help. 13% dividend yield.

Yield of 14% and generally this is a red flag. Had some production difficulties and were in a “show me” situation. Generally, when a stock is in a penalty box, it will stay there for 3-4 quarters. To overcome this, the company decided to produce 3000 barrels of oil per quarter, which they have done for three quarters. Also, made an acquisition using lines of credit, rather than through dilution. He has conviction in the management team. Feels the yield is sustainable.

One of his largest positions.  Had some operational issues.  But the bar was set incredibly low by the street.  He has confidence in the management.  They need to deliver on their promised production levels of 3000 barrels per day.  The dividend at 12.4% has raised alarm bells in the street, but he believes it is sustainable.  They have some debt.  They have the drip program but the payout ratio is close to 100%.

Very sustainable business plan. Have very good capital efficiencies and have access to capital. Debt to cash flow is in good shape. Very long life reserves. Likes this company a lot. 12.8% dividend yield.

Down 40% in the last 12 months. Expects management overpromised regarding their new Salts Flats acquisition in Texas. There were some operational issues and they replaced the chief operating officer and he hopes there is a turnaround there. Also, there was a debate on the decline rates on their Texas fields and some of them will decline 62% in the 1^st year. He thinks the market has overestimated the decline rates and thinks it will drop below 20% in 2014. 15.4% yield, which he doesn’t think will get cut. Have a good line of credit.

Chart shows this has taken quite a dip in the last while. Changes in management because of production mishaps. Need to look at these from both a production standpoint and a commodity standpoint. Have a constrained balance sheet and not a lot of room to raise CapX for growth. More linked to oil than to gas and he feels that in 2013, oil will average around $95 per barrel which will be very positive for them.