TOP PICK
Have been going through restructuring. One of those really big businesses that if they get their restructure to start to catch, you could see significant leverage in the earnings. The technology sector underperformed all through the early part of the year, this one was extremely stable. Really beat the estimates on their earnings.
BUY
One of the most inexpensive oil companies in the world. Probably getting close to fair value. Where the leverage really kicks in is if the refinery game takes over. If the refining margins can consistently go to $10, it is a 3 to 1 crack spread, their earnings will double. The stock could go to the high $30's.
BUY ON WEAKNESS
Have restructured. The stock is less of a deal than it was. Pretty much fair value. One of the few stocks out there that have actually found things. Production should increase, so you buy now on the basis that production will continue to grow. You get exploration potential as an upside. There will be a hiccup and would wait for that to buy.
TOP PICK
If energy is higher and stays higher longer, that justifies the share price. This company should continue to grow. Could hit $75 in the next few years and doesn't care if it goes sideways for the next couple of years. Natural gas is now hot.
DON'T BUY
Partnered with FNX (FNX-T) in Sudbury and they have had a great discovery in the Sudbury area. FNX has traded ahead of its asset value for about a year and a half. Dynatec fully reflects what they have in the Sudbury project, but given time, the value will catch up to it. If you don't own it, you've missed.
BUY ON WEAKNESS
A great little company. Had a recent run up, so he's a little bit nervous on it. Looks pretty much fair value. Buy on a hiccup.
WEAK BUY
One of the truly unique international oil players right now. Doesn't like the existing assets that much and is not quite sure how to put a pin in the valuation. They are spending so much money in exploration and are really finding things. If you are a high roller, it's exciting.
TOP PICK
Weighting in his portfolio has been reduced, but wants to own oil sands one way or another. Valuation is rich near term. Should get to $100 in 2010. Could go sideways for 2 years and he's willing to live with that.
WEAK BUY
Trusts are fully reflecting oil/gas prices right now. This is the best large trust by far, but he is looking for weaker stocks.
TOP PICK
Has picked this in the past and put it on the list to give an update.
WEAK BUY
Essentially heavy oil of the conventional type that he likes as well as other heavy oil. Asset value is around $8/9. Good management. Speculative.