TRADE
Being bought by Enterra (ENT.UN-T). Feels that Enterra's proven reserves might be under 7 years and he needs more than that in his holdings. If you are an E&P player, sell and look for other companies. If you are a trust player, check what the proven reserves are.
DON'T BUY
Very controversial. Has oil and a good refinery upgrade where you can make money. They are in confrontation with both the government and the country's largest oil producer.
HOLD
A core investment. Have some very good upside in Asia, UK, US and Canada. Would buy if the stock backed off 10%.
HOLD
Have a very big acreage in SE Alberta. Good growth in BOE's a day. Should be doing about $0.50 in cash flow by the end of this year. Have a shallow cash field and are trying to go deeper.
TOP PICK
Now producing 7,090 BOE's a day. Had a deep oil discovery, on a 2 week test basis, producing 1,500 BOE's a day and will come on at 500. Feels they will exit the year north of 7,500 BOE's a day.
TOP PICK
This company has been in the dog house. Looking for them to sell $20/30 million in non-core assets to clean up the balance sheet. Have some key areas.
TOP PICK
Currently drilling a well in Romania on 1 1/2 million acre concession. Good people. Sitting on $30 million of cash. If they are moderately succcessful, it could be a $3 stock by year end.
BUY
Looking at this one quite closely. Well run. A good long term investment. Very involved in the Asian ports. Good exposure to coal and their coal shipments are going to double in 2005 and expected to double again in 2006. Not expensive on a P/E basis.
TOP PICK
Has liked this for some time, but the stock has been very disappointing to date due to poor aluminum prices. China has been exporting aluminum. Inventory is now down to 6.6 weeks, the lowest ever. China is adding additional taxes to discourage exports. Stock is cheap at under 10 X this year's earnings and 7.5 next year's.
DON'T BUY
Q: Has a short position and is puzzled as to what is driving the stock higher. A: Facing numerous problems. Their primary issue is dealing with unions on health care and pension. She doesn't short stocks, so can't comment on shorting.
BUY
A great bank. What has happened in the last 6 months is that it had outperformed the other banks previously and is now just resting. Well positioned internationally.
TOP PICK
Canada's largest independent mutual fund. Good growth. As equity markets recover, mutual fund investors will be coming back to equity funds. A high margin business. 3.6% dividend yield and is likely to increase it at a 10/15% rate in the next 3/5 years. Trades at a low mutiple at 12.5 X next year's earnings. Well run.
HOLD
Was under a bit of a cloud over worries that the dividend was going to be cut. Stock responded nicely when it became clear that they weren't going to cut it. 5.4% dividend. Trades at a premium to BCE (BCE-T) and Telus (T-T) and the outlook for them is stronger because they both have a national footprint.
BUY ON WEAKNESS
The oil field is very tricky right now given what's happened to the price of oil. A great company and the cheapest on relative valuation. Under a bit of a cloud as it's production outlook is not as good as others. If you buy oils here and now, be prepared for some volatility.
TOP PICK
A generic drug manufacturer. Going to continue to grow at 15/20% over the next 3/5 years. There's a number of drugs coming off patent over the next 2/3 years and this company is probably the best positioned to benefit. Good price.