TOP PICK
Big office development in Calgary for Encana (ECA-T). Construction financing needs has been a huge overhang. Got $200 million from Fairfax Financial (FFH-T) that is contingent upon getting remaining financing from a syndicate of banks. Feels 80% chance that this happens and if so could see unit price going to $9 to $10.
TOP PICK
Oil weighted and their big play is the light oil Bakkens in southeast Saskatchewan. 11.6% yield. Very good visibility for drilling/fracing inventory. Good consolidator.
TOP PICK
Natural gas. 2nd quarter results were quite strong. Has been unduly punished and is very cheap. Thinks distribution is safe. Do a very good job of hedging with 66% on the power side for 09 and 50% in 2010. On frac spreads 50% in 09 and 15%-20% in 2010. Good management ownership.
PAST TOP PICK
(A Top Pick Dec 4/07. Down 18%.) Infrastructure type of play. More defensive. Good market cap and good liquidity. Very good operators. Stable distribution in a tough economic market.
PAST TOP PICK
(A Top Pick Dec 4/07. Down 18.8%.) Had been looking for more defensive picks in order to get paid while you wait. Feels distribution is safe.
PAST TOP PICK
(A Top Pick Dec 4/07. Down 37%.) The largest REIT in Canada and very well diversified. Unfortunately, REITs are getting tainted with the same brush as financial services. Has been oversold.
DON'T BUY
Unique because they have upstream oil/gas assets combined with more midstream natural gas processing assets. He prefers more pure plays. Had a couple of distribution cuts. Going through a strategic review.
DON'T BUY
Micro-cap REIT in the hotel sector. Not a fan of hotels right now. Large special distribution at year-end because of some gains on properties sold.
BUY
Conventional/oil sands pipelines in Western Canada. Currently involved in the corridor pipeline expansion due for completion in latter 2009 or early 2010. Frac spreads have weighed on their results somewhat but this should improve. 11.6% yield should be safe.
DON'T BUY
One of the bigger energy trusts. Biggest issue they had was not getting good enough returns on capital they were spending. Better names such as Crescent Point (CPG.UN-T), Vermilion (VET.UN-T), Arc (AET.UN-T) and Enerplus (ERF.UN-T).
HOLD
Probably a good quality energy trust. Production is fairly well balanced between oil and gas. Solid management.
BUY
On a debt to cash flow basis looked quite good but saw an opportunity to raise cash and got $250 million. A prudent move on their part as it will fund their capital projects. (One is a Montney gas plant this year.) Should be part of a core portfolio in energy.
HOLD
Management change is positive. Got rid of some of their businesses. Bought a shell company that had tax pools. Reasonable payout.
WAIT
Had a substantial distribution cut of about 40%, which is positive. Good asset base. Leverage is a bit higher than average but the distribution cut addresses this. Would wait to see more positive things before he stepped in.
BUY
Thinks 20% yield is safe for the next 12 months. Very good value at under $6. Negative sentiment because of slowing economy. Advertising spending will be coming under pressure. Much better shape than its peers but have been impacted with them.

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