Latest Expert Opinions

Signal
Opinion
Expert
BUY
BUY
September 20, 2013

Explorer/producer in the North sea. Likes what they are doing. It is very key that they did this $275 million financing. They paid up 9.5% at a bit of a discount price. This frees up all of this money for them to pay off their very restrictive bank lines. NAV is anywhere up to around $1.50, indicating it has garnered a lot of respect. Thinks it will go higher.

Iona Energy Inc.(INA.H-X)
September 20, 2013

Explorer/producer in the North sea. Likes what they are doing. It is very key that they did this $275 million financing. They paid up 9.5% at a bit of a discount price. This frees up all of this money for them to pay off their very restrictive bank lines. NAV is anywhere up to around $1.50, indicating it has garnered a lot of respect. Thinks it will go higher.

Irwin Michael, B.Com, MBA
Portfolio Manager, ABC Funds
Price
$0.650
Owned
Yes
TOP PICK
TOP PICK
September 20, 2013

Involved in nonstandard automobile/motorcycle insurance as well as home insurance. BV of around $14.37 but Tangible Book is $13.50. No debt. Overly capitalized by over $35 million. Stable management. Basically Canadian, but their big driver is Europe. 25%-30% growth. Will probably earn about $1.30 next year. Have an option of putting in a dividend, free cash flowing or buying back stock. It could be a $20 stock. You have to be patient.

Involved in nonstandard automobile/motorcycle insurance as well as home insurance. BV of around $14.37 but Tangible Book is $13.50. No debt. Overly capitalized by over $35 million. Stable management. Basically Canadian, but their big driver is Europe. 25%-30% growth. Will probably earn about $1.30 next year. Have an option of putting in a dividend, free cash flowing or buying back stock. It could be a $20 stock. You have to be patient.

Irwin Michael, B.Com, MBA
Portfolio Manager, ABC Funds
Price
$13.140
Owned
Yes
TOP PICK
TOP PICK
September 20, 2013

Oil/gas servicing. Involved in the transportation side in both Canada and the US in the oil and gas industry. Feels they could become an acquisitor, consolidator by taking out a lot of mom-and-pop operations.

Oil/gas servicing. Involved in the transportation side in both Canada and the US in the oil and gas industry. Feels they could become an acquisitor, consolidator by taking out a lot of mom-and-pop operations.

Irwin Michael, B.Com, MBA
Portfolio Manager, ABC Funds
Price
$3.250
Owned
Yes
TOP PICK
TOP PICK
September 20, 2013

Leases aircraft to a lot of the major mobile carriers. Have over 100 planes. Dividend of 6.46%. Recently wanted to improve their balance sheet and use money for consolidation. BV of around $20. Did a share offer at about $14, which was a little upsetting. Stock went down below $13 but is now working its way back up. Good management.

Fly Leasing Ltd(FLY-N)
September 20, 2013

Leases aircraft to a lot of the major mobile carriers. Have over 100 planes. Dividend of 6.46%. Recently wanted to improve their balance sheet and use money for consolidation. BV of around $20. Did a share offer at about $14, which was a little upsetting. Stock went down below $13 but is now working its way back up. Good management.

Irwin Michael, B.Com, MBA
Portfolio Manager, ABC Funds
Price
$13.730
Owned
Yes
BUY
BUY
September 20, 2013

North sea oil producer. Feels it has an NAV of $3-$3.50. They were under a lot of pressure. When they took over Valliant energy and paid it off in stock, a lot of the Valliant shareholders liquidated their stock. In the Greater Stella, the 1st well came in at over 10,000 barrels a day and they have 3 or 4 others, which got people all excited. The Valliant acquisition took them up to a higher level and it should be and could be a takeover candidate, but it is no longer a small cap, it is now a mid-cap, which should gather a lot of people’s attention. Cheap.

Ithaca Energy Inc.(IAE-T)
September 20, 2013

North sea oil producer. Feels it has an NAV of $3-$3.50. They were under a lot of pressure. When they took over Valliant energy and paid it off in stock, a lot of the Valliant shareholders liquidated their stock. In the Greater Stella, the 1st well came in at over 10,000 barrels a day and they have 3 or 4 others, which got people all excited. The Valliant acquisition took them up to a higher level and it should be and could be a takeover candidate, but it is no longer a small cap, it is now a mid-cap, which should gather a lot of people’s attention. Cheap.

Irwin Michael, B.Com, MBA
Portfolio Manager, ABC Funds
Price
$2.470
Owned
Yes
COMMENT
COMMENT
September 20, 2013

Energy services sector is the cheapest in the TSX. Beauty of this one, along with the others, is that most of them are paying dividends. This one pays 4.5% plus. This company is the largest in the coiled tubing in Western Canada. Have also done a great job in acquisitions and integrating. The company is a sitting duck to be taken over in the next 12-18 months. Regardless of where oil is, services still have to be maintained so companies like this will all do well in this environment.

Energy services sector is the cheapest in the TSX. Beauty of this one, along with the others, is that most of them are paying dividends. This one pays 4.5% plus. This company is the largest in the coiled tubing in Western Canada. Have also done a great job in acquisitions and integrating. The company is a sitting duck to be taken over in the next 12-18 months. Regardless of where oil is, services still have to be maintained so companies like this will all do well in this environment.

Irwin Michael, B.Com, MBA
Portfolio Manager, ABC Funds
Price
$2.880
Owned
Unknown
HOLD
HOLD
September 20, 2013

This one is in the penalty box. It operates out of Egypt. Have hired a new president. This is a work in progress. Has an NAV of around $0.17. Egypt seems to be a place that is still in turmoil but he doesn’t think it is getting any worse. Where they have been producing is off the beaten track, not in Cairo. Just picked up a new property in the Gulf of Suez which should be quite interesting. We are approaching the tax loss selling season, so a lot of people may be selling, which could offer an opportunity for anyone interested.

SDX Energy Inc(SDX-X)
September 20, 2013

This one is in the penalty box. It operates out of Egypt. Have hired a new president. This is a work in progress. Has an NAV of around $0.17. Egypt seems to be a place that is still in turmoil but he doesn’t think it is getting any worse. Where they have been producing is off the beaten track, not in Cairo. Just picked up a new property in the Gulf of Suez which should be quite interesting. We are approaching the tax loss selling season, so a lot of people may be selling, which could offer an opportunity for anyone interested.

Irwin Michael, B.Com, MBA
Portfolio Manager, ABC Funds
Price
$0.080
Owned
Yes