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Energy. Energy is considered a more risky asset class, but she is seeing more “risk-on” days coming versus the past 5 years. Feels generally like the energy sector is working, especially in a lot of countries where you are seeing five-year highs, but not so much in Canada. $4-$4.50 for natural gas is a pretty good price for 2014 but may dip down in pockets of trading. It seems like the coal/gas switching has really tightened up the trading band of where natural gas trades. Crude oil has seen some weakness in the last week or so. It sort of approached the lower end of the trading band, but has improved in the last few days. US numbers on global, GDP growth, etc. that came out this morning will definitely help crude. On the flip side, with all the US production of light oil increasing, it has a lot of people worried, but she does not think crude will crash. The $85-$105 WTI US$ per barrel range is what she has been using for the last couple of years and still feels that is intact.

Unknown
TOP PICK

Market reaction has been a little too harsh. Having some operational issues at one of their flagship oil sands properties, Foster Creek. Steam oil ratios are a little higher so is costing a little more. Believes the underperformance of the stock versus the peer group is about 16% in the last year and therefore it is a good buying opportunity. Has a tremendous premium to the peer group because of the long life, high-quality oil assets. Dividend yield of 3.09%.

oil / gas
TOP PICK

Saskatchewan oil assets are now a small portion of the company compared to the Northeast BC Montney play that they have. Massive land base with much of it surrounded by the Petronas - Progress land base. Has a great chance of doubling the share price in the next 5 years. They are going to use debt for the 1st time to fund a lot of their production without having to go to the market.

oil / gas
TOP PICK

Heavy oil focused producer with a good management team. Just went public in November. Trading at a multiple on cash flow that is dramatically lower than their entire peer group. Two new coverages by analysts today, so you will see people start to cover it, creating more interest in it, and institutions will start buying. Great valuation.

oil / gas
BUY

Great assets, good management and looks like they are turning around. Why are they becoming a dividend player? Sometimes companies have to do what the market is telling them and the market is telling a lot of oil/gas companies that they will not invest in them unless they have dividends. This increases the amount of capital available for them. This is still a strong enough asset base that it is still cheap enough that she would still be buying at these levels. Payout ratio is on the lower end compared to a lot of the legacy former royalty trusts. She is comfortable with the payout ratio. She can see it at $7 over the next couple of years.

oil / gas
BUY

Has taken quite a hit over the past few weeks and months, and that is partly due to some personnel changes, and diversifying their portfolio a bit more, which some investors did not approve of. Can see $3-$3.50 for this stock.

Oil and Gas (Integrated Oils)
COMMENT

Their debt is higher than the average competitor group. They are trying to right the ship and have some good oil assets. It will be all about whether they can increase management’s credibility. 8.5% dividend.

oil / gas