N/A

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.

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%.

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.

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.

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.

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.

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.

N/A

Cardinal Energy is a new IPO opening up next week. She is not participating in the offering, but it was very close. Chose a different one (See Top Picks). Looks like it is going to set up for a nice dividend paying oil focused company led by a management team that has done this numerous times. Suspects you won’t be in a lot of trouble holding this stock.

HOLD

Stock has performed quite well over the last couple of quarters and likes what they have done. A wonderful kind of multiyear story. Although it looks like it has done quite well in the last few quarters, it still has a lot of upside. New CEO cleaned up the asset base and lowered operating costs. Inexpensive and has a lot more upside. Can see $23 in the next 12 months.

BUY

Big selloff yesterday was from Aimco selling their holdings of about 56 million shares. After this drop, she is definitely looking at getting into it again.

COMMENT

Trading at slightly less than its NAV right now. Just made a big acquisition that is going to increase their net back and decrease their decline. Sold her holdings about a year ago. They are high grading their portfolio so she is looking to possibly get back in around this range.

PAST TOP PICK

(A Top Pick Sept 11/12. Up 9.09%.) She has purchased more in the past year. Inexpensive multiple. Have oil exposure but tons of upside to natural gas. Very well run company. Still a Buy.

PAST TOP PICK

(A Top Pick Sept 11/12. Up 83.21%.) Took a little bit off the table, but continues to trade around it. A core position. Strong management.

PAST TOP PICK

(A Top Pick Sept 11/12. Down 14.08%.) Angle Energy has decided to sell the company and have a takeover bid. She is disappointed that they decided to sell so early. Believes there would’ve been a much higher price in the future had the company been patient. Good management team.

WAIT

She sees a rapid turn to the positive for Cdn oil and gas stocks and this could be a potential. Because of the higher debt level, it may move higher than others because of the torque.