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Markets. When you look at longer term value in oil stocks you have to look at this as a pullback and a buying opportunity. Fundamentally nothing has changed in the last 5 months except punishing Russia. The US is suppressing world oil prices. Forecasts are $70 for the next year or two for oil prices. Accumulate on weakness, not run for the sidelines here. Speculators are still very long oil. The price should not stay below $80 for long. If we get the pipelines going east/west we can sell our oil more easily on world markets and get the price and this will benefit Canada.

BUY ON WEAKNESS

They have had flat revenues for 4 or 5 years now. There is not a big growth profile to the company. With energy prices as they are, they should tend to do very poorly. You are going to see way more volatility over the next year. The trends aren’t good here. This stock is getting very, very oversold and so you could nibble at it, but it will come with lots of volatility.

COMMENT

There will be a cold war between fracking in Canada and OPEC. For the next year or so there will be playing back and forth. OPEC has said they are okay with oil in the $80-$100 range. In Canada, you have to cut costs, and be sure of your cap-X. A lot of the production in the world will not be profitable. He added SU-T on the weakness to client portfolios. ZEO-T yields 3.4% and on a risk adjusted basis, you get a better quality dividend than the banks.

BUY

Yields 3.4% and on a risk adjusted basis, and you get a better quality dividend than the banks. It is one of the largest holdings he has. It is getting very attractive on a relative basis. It is a global dividend seeking fund. There will be increased volatility for the next year or so.

BUY ON WEAKNESS

If you liked it at $50 you have to like it a lot more at $39. You want a half position or less in your portfolio. You have to trim so you can add it back when it bottoms. It could potentially fall a lot lower if the momentum picks up to the downside. Never average down, but average into your position.

BUY ON WEAKNESS

They are a growth company, increasing production and revenues. The potential is here and you want to accumulation the growth names on weakness. It looks like a good one long term.

BUY ON WEAKNESS

People are selling because they worry about sustainability of the dividend. But you should be buying these when they are weak. You should be more defensive when things are looking good. You need to re-frame your thinking since that is not the case. Oil will be volatile for the next year.

DON'T BUY

Not one of his favourites. Prefers SU-T or IMO-T, but it is a play in the sector. You need to own 10 stocks because if you own 2 or 3 you may pick the wrong ones. He prefers XEG-T or ZEO-T for diversification.

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Educational Segment. How to Play the Energy Sector. ZEO-T, HXE-T, CLO-T, and XEG-T are the 4 ways to play the energy sector. OXF-T and HXE-T do a covered call overlay, offering two more ways. Equally weighted ETFs usually outperform market weighted indexes. Covered call ETFs usually give you about 2 percentage points more than the others.

N/A

Markets. He saw a lot of investors selling because the market was down. Then people said the market was down because oil was down. Two weeks ago was ridicules, just full on fear. There were opportunities. This quarter doesn’t matter. It is the next 5 years that matter. There is a lag effect of 6 to 9 months for the oil price to affect markets. If oil prices stay low for any period of time it is like another stimulus to the economy. Get a weighting in the sector that you are comfortable with. Keep your weightings in the sector.

WAIT

Everyone got excited about marijuana stocks last spring and then the frenzy died down. They are licensed and are producing. Their sales were only $188,000 last quarter. They will grow and have big plans. But it is too early for the entire sector right now.

WATCH

Contractor that will get a lot of business from LNG. They can decide what contracts they will go for. It is a good little company that is growing nicely. You won’t know if they have good contracts for some time. It is a 5 year investment. They are probably the better of the group, however.

WEAK BUY

The sector went down and they raised the dividend, so it seems high. He has no idea what the sector is going to do, but thinks they will continue to pay the dividend. The management needs to be left to do their thing which they have done for the last 20 years. WCP-T is a leader and has outperformed this one.

HOLD

It is in the okay category. He does not focus on the resource space. Assets and Management are okay. No one expects a lot, but that is reflected in the valuation.

BUY

A fabulous company in terms of online gaming. He really likes the company. Prefers to AVO-T. The industry is growing so fast. They have done every single thing right in the last 4 years. Management has 26% of the company.