Energy sector has has 2 solid years of blow out end markets that it's been selling into, so balance sheet quality has improved dramatically. This could lead to mergers/acquisitions including CNQ. He is shorting this stock.
Moved up on income trust rumours, but pulled back on poor financial results. Has an interesting business that could potentially offer some value from a trust perspective, but fuel costs indirectly affect them. Feels that petroleum prices have moved to a new trading range which will raise their incremental costs which will squeeze their profits.
A roadside gas/covenience store. Recently acquired Circle K in the US which resulted in some one time costs which affected their quarterly results and the stock dropped a bit. Will take a couple of quarters to get integrated. Very attractive situation.
Being bought by Enterra Energy (ENT.UN-T). Feels the deal will be beneficial to shareholders, but not a big fan of Enterra as they had a very, very short reserve life. If you own, take the cash.
Exceptionally strong at finding their own production growth. Have upgraded their production estimates 6 times. Good management. Currently producing 11,500 BOE's a day and expects them to exit the year at 17,000. Tremendous growth rate. Tightly run operation.
Outlook for aluminum is attractive. Chinese consumption is going to increase. There has also been some insider buying at Alcan at the senior level which is a good sign. Historically, every time it's approached its book value it's always been a good time to own the stock.
Its operations are in the center of the apex where a lot of international growth is going on. Pulled back and consolidated and now looks like it is starting to recover.
Q: Being bullish on uranium, do you prefer Cameco (CCO-T) or Denison Mines (DEN-T)? A: The price of uranium will move up steadily. A lot of Cameco's uranium price is hedged. Stock price is also based on their ownership of the Bruce Nuclear plant. As time goes on profitability will rise. (This may already be built into the stock.) Prefers this over Denison.
Q: Being bullish on uranium, do you prefer Cameco (CCO-T) or Denison Mines (DEN-T)? A: The price of uranium will move up steadily. A lot of Cameco's uranium price is hedged. Stock price is also based on their ownership of the Bruce Nuclear plant. Prefers Cameco.
Likes current correction in the stock price. Consolidating. Earned $0.67 in 2004 for October and $0.80+ year end. This year, they will make $1.40/1.50 and next year possibly $2. Will be using ceramic protection in police cars which is a whole new area for them. Debt free. With a ramping up of their manufacturing facilities, earnings will accelerate.
Has an effective monopoly in northern Alberta related to the movement of oil drill rigs and trucking out of drilling waste. Have made a lot of acquisitions, so its earnings profile has changed. Has potential to earn close to $1 run rate over the next 12/24 months.
Energy services area. A unique niche in that it is the approved and prodominant drilling company that is allowed on aboriginal land. The cheapest stock in the drilling group.