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Markets. He is starting to see the US turn over, which was a very important part of the supply chain that we needed to see start to slow down. Starting to see growth going negative. The only thing that is a question is OPEC increasing their supply. That has really offset the benefits of the US. He is looking for a balance point of $60-$65 US a barrel in 2016. Sees oils improving in the 1^st half of 2016.Has been telling clients who are in oil already, to try to high grade. Take those losses which can be valuable in the future as you create some gains from some new positions, and high grade into companies with the right balance sheets, assets that can continue to generate returns. If you can start layering in positions in October and working your way through January, you’ll start to see some better strength going into the latter half of the 1^st half of 2016.

Any time you see double-digit yield, you have to be concerned that the market is indicating things. At today’s strip price, nobody is safe. This company made the dividend cut and felt it was right sized for at least the next couple of quarters to see where prices go. They probably have to look at their dividend again in mid-2016 if we are still sub-$50 oil.

The only issue is that they have missed the last few quarters. Have gone through a crucial buildout phase where a couple of mines are ramping up, which is significant for their growth profile. It should go from about 2.9 million ounces to about 3.4 million in the next 18 months. This is a big growth producer.

The largest reason for this doing so poorly is that zinc prices are down about 25% year to date. Although they have a great outlook for growth, they will probably double production in the next year with Caribou starting up, to complement what they have in Peru. Right now the commodity is trading towards breakeven territory on an all-in basis, and not something that attracts the market. An issue overhanging zinc is the Glencore probably putting metal into the market to try and deleverage its balance sheet. Zinc will probably be his favourite commodity going into the latter half of 2016.

Uranium is a pretty depressed space. This is one of 3 names that are relative in the Canadian uranium space, and it is the third. It is the furthest behind in terms of progress. He has a limited appetite for uranium in general.

Downgraded to junk status recently. Involved with Fort Hills, which is the big cap spend they have through to 2017. Debt is not a big concern. They are in the met coal-copper space, and neither looks enticing, especially met coal. M&A is on the back burner and they want to focus on getting Fort Hills across the line and manage their debt.

CEO indicated he wished they had raised more equity when they did the Aurora transaction, which got them their move into the Eagleford in the US. This saddled them with above average debt to cash flow at a time when nobody anticipated oil did what it did. Although it is a great asset it is non-operated, so not as attractive.

(A Top Pick Nov 5/14. Down 77.57%.) Mostly natural gas although it’s liquids content will continue to increase with the new gas plant. The growth story is still intact, but the issue has been “missing targets”. He has reduced his position steadily over time.

(A Top Pick Nov 5/14. Down 77.16%.) This has been in a deep dive, especially over the last 4 months. People have concerns about the depth of inventory and how long can they go with it.

(A Top Pick Nov 5/14. Down 23.91%.) Still a core name for him. A liquids rich gas producer. It is quite unique in terms of its size, in that it is producing over 140,000 BOE’s a day but still growing production per share, in the neighbourhood of 25%. He sees several years of growth ahead of it.

A name that was painful to be in earlier this year until they did their cut in August. There has been a relatively good response since then. A great light oil, high margin producer focused in Saskatchewan. Balance sheet has been right sized with a cut in the dividend. He thinks they can maintain a 100% payout. If oil stays where it is for another 6-9 months, everyone will be susceptible to having to make some cuts. One of the “go to” names if you are looking for a large, liquid light oil producer that can give you some upside. Fairly well hedged at about 35% in 2016, near the $85 US per barrel range.

This is a unique one, an early stage Montney player. It is very hard to get into this area because they are very expensive wells and you need a bit of critical mass. The company is relatively well capitalized. Higher risk because of its size.

Not just a Canadian producer, but also in France, giving them a bit better pricing. This is in the group that he considers would be the safest in the next 6-9 months from a dividend point of view. Light oil, high margin producer and great on focusing on efficiencies.

Very well hedged through the end of the year, and as they get into 2016 it is still around 40% at above average prices. Efficiencies are top-notch, and thinks you will continue to see them ratcheted down, so no concerns, even in this environment, for another 6-9 months.

A copper leveraged name. Have had its teething pains in terms of crushing issues, throughput issues and secondary crusher decision outstanding, so it is not an easy one to get your hands around. Feels they are treading around the breakeven point with copper prices in the $2.30-$2.40 a pound range. Debt is high, but a lot of it is with their partner Mitsubishi, which provides some protection. He wouldn’t recommend this.