Bill Bonner

Markets. The Saudis are accomplishing what they set out to do which was to protect their market share. They were targeting the rapid growth in the shale oil industry. He thinks they will keep going for a while and then eventually the oil price has to go up just for them to balance their own fiscal budget. We know the pain is there for them as well. The expectation is that the demand will get stronger. He doubts the Saudis see Canada’s light oil production as significant. The drilling activity in Canada is one third what it once was.

Their leverage has to come down and that probably means asset sales. He is not comfortable holding it, although it will respond if oil prices to up.

Always a "go-to" name. The dividend is absolutely secure. The projects they have are light oil projects and are stellar. They will continue to hold it. There is also a growth aspect when oil prices start to go up. Also they are known acquirers. He would not be surprised to see more acquisitions.

He partially sold when it rallied some months ago. They are delivering on their promise. The question is what is going to happen with the LNG in BC. One of those projects is bound to go and they are positioned to deliver Nat gas to those projects. He very much likes the stock at today’s prices.

He likes what is happening in Argentina. It is a net importer of oil. They are getting an absolute premium price inside the country. He would not be surprised to see it become a takeout target. They have no debt. They have some shut in Canadian assets which could start producing if oil prices improve.

There is no question the assets are fabulous. The problem is the balance sheet that is causing them to sell off assets. It will probably react if oil prices go up. It may be good for a trade sometimes but he would not invest in it.

They have the respect that many companies can’t get in the market. They refocused into some big play areas. Their reputation is stellar. They were not beaten up like everyone else was. The balance sheet is relatively strong.

(Top Pick Oct 3/14, Down 50.46%) He was driven out of it by some external circumstances. He thinks it will have a pretty good run-up as things improve. It is probably a late cycle stock.

(Top Pick Oct 3/14, Down 22.35%) It has performed fairly well in the context of this market. It is not overly levered. It gets great traction amongst some of the firms that follow it. He sold some, but will stick with them from here.

(Top Pick Oct 3/14, Down 31.74%) They have done a great job. Their business plan is to take advantage of low gas prices, which they still are.

Don’t sell now. Stick around and see what happens with the acquisition of them. SU-T is being opportunistic. He thinks a merger of the two companies makes the most sense. He would not buy now, but hold what you have.

They had some success on one of their plays involving fracking with ‘slick’ water. They resolved some issues from last year with bottlenecking. The recent news about their success is probably a turning point for them. They may be a takeout candidate at some point.

He still likes it and it is a core position. They have incredible operating efficiency and can make money at $40 a barrel. They keep delivering quarter after quarter. He thinks it will be a go-to name for the market.

They have been having some great success in the field. They are a growing concern. They hit a sweet spot. Their net backs are approaching $15. Debt is no longer a concern. They also had some great hedges in place.

The caller was correct to average down. This company has great respect in the market place. You immunize yourself from any NDP fallout from Alberta. It is unparalleled. It could be one of the early movers in a recovery.