Mart Resources Inc (MMT-T)

Nigerian oil and gas play. This is a tough one. It is not for the faint of heart. Looking at acquisitions that may grow their production quite a bit. Does not know if he would enter the stock right now.

Nigeria is a very difficult place to work in. There is a lot of theft in the pipeline, but this does have a very good yield. They may be looking to make some acquisitions and hopefully to continue to extend the pipeline to get more cash flow through. 13.3% yield.

(Top Pick Dec 27/12, Down 13.98%) 16.25% dividend. He was afraid it would get cut. Huge play on Nigerian oil. They had some problems in terms of the pipeline. It is still up in the air if the theft from the pipeline may cause a drop in the dividend.

Recently production numbers have not been coming through and the pipeline in Nigeria has been down. There is a lot of theft in the pipeline. Nigeria is not the easiest place to work in. He is doubtful that the 17.5% dividend can remain where it is right now. They are going to need their cash to try to increase production and build out their pipeline.

Historically they have had a big loss ratio out of their pipeline in Nigeria (theft). Were supposed to work with Shell to get a new pipeline that would go out to the Ocean. They are not currently covering their dividend. If they get the pipeline issue fixed it has a lot of upside.

Operates in Nigeria, so there is obviously country risk. It is always cheap. Although she hasn’t looked at valuations for a while, it depends on the declines of the wells but these wells come on significantly strong.

Oil producer in Nigeria. Has a pipeline which has some associated losses with the pipeline by the operator. They are working on an alternative pipeline. Good assets and good production. Cash flow should pick up quite nicely over the next couple of years if they can solve the pipeline issue. Not a bad little company in terms of an African oil producer. They’re a pretty big risk as the 13% yield would indicate. Very speculative.

Was a top pick in Dec/11. Nigerian oil and gas play. Difficult play. Trades with a 13% yield. Production can expand because there is more capacity in the pipeline. Be aware of the geographical risk. More upside than downside, 13% yield. They have to keep up their production. Thinks dividend will be safe here.

Oil producer in Nigeria. A company where there is lots of risk and lots of opportunity. Started paying a dividend about 1.5 years ago. Dividend yield is very high. The big problem is the pipeline. They have operator losses which basically means people are stealing from the pipeline. Just announced an update on a new pipeline. The key to this company’s future growth and stability is a secondary pipeline. Their assets are quite strong, management is okay, balance sheet is alright and their producing potential is very good. Once the pipeline is fully commissioned, the stock will get a lot more interest.

Stock has really come off in the last few days. Trades at a low multiple because it is working out of Nigeria. Thinks the dividend is safe here. Pipeline has been down for quite some time but they have $100 million credit facility and he thinks a new pipeline is going to come on at the end of this summer. Still likes the story. 13.5% dividend yield.

Has gone up a lot. Introduced a dividend last year and paid a special dividend. This insulates a stock from going down too far as long as they keep hitting their targets. Excellent balance sheet. The major caveat is that they are in Nigeria. You never know when you are in a company like that when the government might decide to change the rules. If he owned, he’d be thinking maybe it is time to sell. Trading at the top of its range.

Started dividend last year. Working desperately to get a new pipeline in place. Then it will look much better. Exploration potential is quite nice. Some risk from politics, pipeline, but if that gets solved you have a very good company.

(A Top Pick Dec 29/11. Up 96.1%.) Really likes this story. Generated $30 million in cash flow last quarter. Have been some hiccups over the last couple of months where a pipeline went down but it is now back up and running. Feels they are going to find well results in the next couple of weeks or so from one of their tests and this could be quite prolific. Also, into discussions with Shell to get more capacity on the pipeline and if they can get this, he could see the stock getting to $2.50.

Was a Top Pick for him in December and has done very well since then. A little bit of a pull back over the last couple of months. Reported a quarter that wasn’t as good as expected in terms of oil production in Nigeria. Believes they have been doing very well over the last 6 weeks. With the cash flow they are generating and the dividend yield there is a lot of upside in it. Once the market and Bay Street become aware of this story, he cannot see any reason why they couldn’t reach $2.50 in the next 12 months.

(Top Pick Dec 29/11, Up 73.72%) Story got better since he was last on. Special dividend from July and now a regular dividend going forward. Bay street still doesn’t know the story.