BUY
Spun off Northern Horizons and will focus on the McKenzie Valley area. Their prospects are fabulous if the pipeline goes through. If you feel strongly about the pipeline going through, they have assets that are first in the area which will give them a big advantage.
DON'T BUY
Merged with Viking and neither were on his top lists. Viking had heavy oil assets and Harvest had a short reserve life. Will watch to see how it performs.
DON'T BUY
Has a great asset North West of Edmonton. Well managed. Spends a large amount (270%) of its cash flow on capital expenditures and distributions. Numbers are pretty spectacular. Had a huge growth rate. Companies tend to drill up their best wells 1st, so has not taken a recent position in it.
DON'T BUY
Merged with Sequoia Oil & Gas Trust (SQE.UN-T). This will give them economies of scale, technical people being able to concentrate on the valuable assets. Not a favourite trust of his. Assets are not as good as other companies.
BUY
Gas weighted. A good company. One of the best management teams in the oil patch. You could take a small position now and add more if there is further softness down the road.
TRADE
Hasn’t bounced back like others, as it was fairly expensive. Likes the company. Its principal asset is the 20% interest in the Athabascan Oil Sands project, operated by Shell (SHC-T). Priced with a premium because it was considered vulnerable to a takeover by Shell.
WAIT
Dropping basically because of the market correction. Pull back on drilling for natural gas wells will affect them negatively to some extent. Only a temporary phenomenon. Well managed, well run. There will be some good buying opportunities in the next several months.
BUY
One of the best run royalty trusts. Good variety of properties. A core holding for most portfolios.
DON'T BUY
Have had a negative outlook on this for some time. Have a virtual monopoly on the distribution of propane. Usage of propane is down. Has also gone into other areas and he prefers one industry.
DON'T BUY
Not well liked by the market. Good assets from the Thunder Energy company did not end up in the trust. Took on quite a bit of debt. Paying a relatively high payout relative to their cash flow.
BUY ON WEAKNESS
Gas weighted so has dropped with gas prices. Good management. Buy on any softness and spread your purchase out.
BUY
A pretty exciting small junior. Production has grown pretty dramatically. A good part of their production is gas so there has been some softness.
DON'T BUY
About 74% of its production is in gas. Relatively cheap because a lot of their assets are gas, which has high, declines associated with gas. Possibly a takeover target. 72% payout ratio, which is high.
BUY
About ½ the assets are in trusts and the rest in oil/gas. Pays 5% on issue. Expect that monies will eventually get into good capital appreciation areas.
PAST TOP PICK
(A Top Pick Apr 13/06. Down 14%.) Still likes.