Latest Stock Buy or Sell? Make More Informed Decisions!

Looking to acquire Crocotta Energy (CTA-T). People that own this like it because of the stability of its income. The acquisition will build that case. A good, solid, dividend paying company, with some upside. There are other dividend players that he thinks may be a little more attractive.

It is not often that you see a bought deal that is re-priced and re-sized. Clearly someone made a mistake. This has been a pretty dynamic business, and has done a very attractive job of attracting joint venture money to their capital program. Their Cardium play is very robust. Suffered some short-term production curtailments because of plant turnarounds, of which they had no control, so he would not give up on the stock. Still thinks there is some upside.

Being acquired by Long Run Exploration (LRE-T). The company that is being spun out of this company, Lucrotta (?) is going to be a Montney focused gassy producer, an area he really likes because of his view on LNG. If you want exposure to Montney, the Lucrotta is going to be one of the “go to names”. Team has a great record of adding value and growing production, and are now in a very robust dynamic Montney play that is well financed.

A great name. Made some acquisitions to lighten their production mix. Still sees this as a name, given the robustness of their plays, that could have the potential to be a $2 cash flow number, which would infer a $10-$12 stock. Very excited about their prospects.

Principally an oily asset base. Had a tough go proving to the market that the dividend is sustainable. This is obviously why the yield is so high. There is a little bit of risk to the dividend. When oil prices have been incredibly robust, this is probably more secure than when oil prices were to sell off a little. There seems to be a negative tone to the cross-border trusts. Feels the dividend is 80% safe. If you like oil, probably not a bad place to be.

Very well-managed company. A stock that he tends not to have to worry about regarding dividend risks, etc. One of the low-cost operators in the basin. Dividend is secure. This is a name that you can sleep at night without worrying about. At this price, there is a pretty convincing argument that you might want to buy more.

Struggling. They suffer from a balance sheet that has been stressed. Made some moves to try to rectify that. Looks like production is flat to falling. Doesn’t look at this as a great growth story. There are better names to own.

Did a great job hedging production. Have great currency to go to for their acquisitions and fully expects that is the path they go down. Their asset base is probably the most prolific, most economic play in the Western Canadian sedimentary basin, the Bakken, and there is a dividend attached. This is a name you acquire on any kind of weakness.

Great company. Their weakness we typically see when field activities decline when spring break-up occurs. There could be some surprises as to how the 2^nd quarter numbers look through the break-up. That could be a positive catalyst in the very near term. This offers one of the best growth curves in the sector. Wished he had owned this earlier. Feels there is a ton of upside left in this stock. On any kind of weakness, it is probably a good time to Buy.

Feels there is still a ton more upside. Recently sold the genesis of the company, oily assets in Saskatchewan, to focus on the Montney play in Northeast BC. Montney offers some of the best economics in the Western Canadian basin, and this company has a significant land base there to take advantage of it. Originally budgeted about 20-21 wells this year, and they are going to be able to double that with the sale of the Saskatchewan assets. They are in the way of the big guys. Somebody is going to want to own those assets once they develop a little further. If they choose to develop them fully by themselves, they will get the cash flows and production levels that will impress the market.

Sold non-operated, non-core assets to focus on their Alberta Montney play. This hasn’t got a ton of respect from the market in the past couple of years, but have now demonstrated they deserve the multiple they are currently getting. Boiling down the numbers, you can build a case for cash flow escalating from $0.30-$0.40 to $0.75-$0.80.This will probably garner a premium multiple as they develop their Montney assets. Have lots of play content in the Montney. Have $10 million in the bank and an undrawn line of $135 million.

Have a big presence up in NW BC with a ton of equipment in the region all the way out to the coast. Have things that can grade roads and devices that can mulch the trees. Have a good core business going. There is a big damn project that BC Hydro is working on. This gives you 2 big capital intensive projects unfolding, LNG and the Site C Dam. This company is right in the middle of all that. They will probably do North of 50 million EBITDA next year. He could see the stock going well north of $2.

Canadian Energy. 2014 has been very solid so far for Canadian energy stocks, and it was just time for a catch-up. Still thinks there is a lot of room to go. Purchased about 15 stocks in the last week or so, so she doesn’t think this is the end of the energy cycle in Canada. The Canadian energy sector lagged behind even though many investors have seen a great run. Oil/gas stocks have been weak basically since 2008. It was such a prolonged downturn, that she is forecasting the run is going to last longer than many people expect. Has recently seen that a lot of the growth stocks with zero dividends, really were on fire. In addition, in the last couple of weeks, she has seen a lot of really high quality dividend companies come back.

This is quite complicated, and she wouldn’t purchase at these levels. There were some events that needed to occur to decrease the risk. They didn’t occur, and she wants the most minimal amount of risk.

Until she sees their debt numbers and visibility of a lower debt, she will not be buying. Likes to see debt at 2x times or less on a debt to cash flow.