N/A
Markets: Chesapeak production cut: They are sending out a message that after they meet their minimum commitments, they aren’t making money, so are cutting back production. A 1.5% cut in US gas production. Others have cut back also. We are slowly starting to see this message.
WAIT
Finally seems to have come out of the penalty box. Better consistency on their execution and under promising and then over delivering. Still significant execution risk. Is near term cautious.
HOLD
Did another acquisitions and not as great a start. Good oil leverage. He added when it was in the single digits. It’s early days but not a bad play to have with its strong asset base and size. They can stomach a few bad wells. Doesn’t think he would add to it at this point.
DON'T BUY
Dividend is safe. Strongest balance sheet amongst the seniors. Had their headaches in going through transition of new management. Wants to see tangible evidence that transition is complete. No issue with the dividend. Prefers CNQ.
HOLD
Problem is regional risk. He likes it as a pure gold play. Thinks they have one of the best growth profiles out there.
WAIT
Has been a good start to the year. Everything that didn’t work last year is working this year. Getting more bullish on Uranium. CCO is licking its wounds a bit. It will be interesting to see how they refocus.
HOLD
Have been hurt more than domestic producers. It is oil focused so you have the full benefit of strong oil prices. Very high prospectivity.. Not drilling 100000 barrel per day wells. They are 5000 barrels per day. It is a name that is starting to get very interesting to him. Good growth profile.
TOP PICK
He believes we are seeing a very firm bottom for nat. gas prices. This is a premier deep basin player. Has owned for a couple of decades. This is the top take-out candidate if someone wanted exposure to deep basin wells.
TOP PICK
Important to focus on gold side in high-grade companies. Look for exploration results through out the year. Could be a double. Under $900 an oz cost. Things are moving fast with this name and under a billion market cap. so easy to take out. Well run company.
TOP PICK
Nat Gas star. Cream of the crop if you look at management teams. You can see where it was when gas was in the $3 range.
PAST TOP PICK
(Top Pick Jan 13/11, Down 32.25%) Out performed base metals. Likes the exposure to copper and the zinc exposure.
PAST TOP PICK
(Top Pick Jan 13/11, Down 30.24%)
PAST TOP PICK
(Top Pick Jan 13/11, Up 367.98%) Spun off their tank division and he continues to own both names. The tank business will double in the next year.
N/A
Markets: 10 year low on nat. gas price last week ($2.22). It is the beginning of a ticking point. Chesapeak is the beginning of producers reducing production due to the price. It is one of the warmest winters in the last 60 years. Huge inventories. Physical storage levels will be filled by next October/November. He feels we need a price of less than $2 to get more companies holding production due to negative free cash flow. CNQ and and ENC have announced they are not shutting in production. Will have a decoupling of nat gas pricing from the stock pricing. He is looking for shut-ins, which we got on Monday’s and capitulation. The fear level is not there yet. We need later nat gas prices to get that. He thinks Gas prices will go below $1.50.
HOLD
This stock caused him to despise exploration. They now have an element of cash flow and some cash on the balance sheet. They are trading at 2.5 times cash flow. Thinks they will get taken out. He sold it.