Have a bit of a different model. They don't operate their assets, but get royalty payments from the production. They don't have the cost issues so much. Defensive.
Prefers Talisman (TLM-T) but this is still a name you can buy. Could be a takeover candidate. Has solid properties but has had some disappointments in production.
This is a great time to be looking at utilities in general. They don't have a lot of growth, but are sensitive to interest rate movements. US is starting to lower interest rates.
Likes refineries. Reasonably valued. Thinks it will go higher. There is a little seasonality with this where it ramps up in the summer and declines in the late summer and fall. You could buy today and hold on till mid-July when you could exit.
Juniors are getting hammered in this low-priced environment. This is one of the better juniors. Could be a good short-term trade that could be sold in December when the speculation on cold weather will be strongest.
Everything has been negative about this stock for so long that it is perceived as a value play on the street but it has started to meet and exceed production goals. Inexpensive.
Merging with Canetic (CNE.UN-T) and it's an OK transaction. Would be a holder, but not an aggressive buyer. This company has a good operating discipline and Canetic is more of an acquirer. Have some very good assets to put together.
Once it's up and running, the market can assess just how cost effective the economics are. One of the better names and they have good partners. Certainly worth more. Could be acquired by one of the partners.
