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Have done an excellent job ratcheting down costs. They struggled a little when they were a trust, but then spun out their oil production into Longview. This has put them into the category of a lower cost producer on the gas side. They actually make money when everybody else is not. Have hedged very well and have a huge cash flow growth profile.

Natural gas processor. Has traded down quite a bit, where she thinks there is an opportunity. A very strong company and is in a good environment for picking up assets from some of the struggling oil/gas companies that own riskier assets. This is definitely worth a second look, particularly when you see where the stock is trading. A good dividend which she thinks is safe.

Sometimes companies are forced to sell midstream assets to raise capital, but unfortunately the company that owns the midstream charges for that. Encana is having some issues in that they are having some really high costs on the transportation side, as well as having high operating costs. In this environment, you want the low cost operator, and this is not it.

This is quite challenged at this time. Have raised some capital, cut the dividend and sold their royalty package. Essentially with commodity prices where they are, the debt has ramped right back up again.

This is doing quite well right now. Had to cut the dividend and rationalize their CapX, but have been able to high grade their portfolio, which helps them in terms of their operations. You own this for a torque in oil prices, because in this environment they are not making any money. Sees better options elsewhere.

(Market Call Minute.) Great company and great management with lots of growth opportunity. Feels they are going to be an acquirer in this market. Very good balance sheet.

(Market Call Minute.) They are ramping up debt with the decline in their production profile. Not a good combination.

(Market Call Minute.) Great assets, but has been challenged by rising debt. Also, valuation is quite high relative to its peers. A lot of companies look to Short this when prices are going down. Likes management.

(Market Call Minute.) There is talk about a dividend cut, and thinks it is quite likely. They don’t want to carry any debt, and the payout ratio is over 100% right now. They can pay out almost all their cash flow because they don’t have to spend any money to drill. However, with Canadian Natural Resources (CNQ-T) selling their royalty assets to Prairiesky, you have to recognize that CNQ has a 19% ownership. They could cover off some of their debt to CNQ shareholders in the form of a dividend. Wait until that is over.

She picked this, not only because she thinks oil prices are going to go up, but the business has not been impaired like others in this environment. You want to be exposed to a company that is not going to fall apart, but also has an upside opportunity. Operationally things are going great for them. Decline rates in production are slowly coming down, which means they have to spend less capital. Dividend yield of 8.66%, but wouldn’t be surprised if they cut this again.

Big transporter and storer of oil. Has traded a lot with commodity prices, which is a little unjustified. Valuation wise it looks really compelling versus its peers. Have spent a lot of money on terminals and pipelines to gather oil in the heart of Edmonton for shipment. This should improve their cash flow profile. Has a lot of “take or pay” contracts which provides a lot of help. Dividend yield of 8.55%.

They have not impaired their balance sheet with what is going on in oil prices. This does really nicely for higher oil and gas prices, and the company will do quite well in that environment. Also, thinks its business has been proven. There is going to be a lot of free cash flow generated from its current project offshore Ireland. Have already drilled the well and just have to turn the taps on and wait for the money to come in. Great management team. Dividend yield of 7.85%.

Markets. Things people are worrying about are not new problems for the most part. Markets for the last 5-6 years are advancing in spite of major issues percolating underneath the surface. The problems really never went away and as valuations continue to appreciate, and as some of the problems became more acute, it has given people pause to think about their positions. A common lore is that demand for oil is falling, and falling oil prices have been a symptom of weak global demand. However, demand for oil last year was the strongest it has been in 5 years. The problem is we have too much oil. This is an example of people focusing on what is an easy answer. Another one is the focus on China. China is decelerating its economic activity and is going through a transition, and people are worried about the devaluation of the Renminbi and what it is going to do to global markets and that we are going to have a currency war. We are already having a currency war and we are all pushing China to make their economy more open. The Chinese currency has appreciated, as has the US currency, for many, many years now. Now the currency is going down a little and people are criticizing them. Nobody pays attention to the fact that every country is in a competitive devaluation situation, which is very deflationary and is causing major problems to the US economy. Investors are only now starting to pay attention that the strong US$ has become a major headwind to US multinational corporate profits. He carries a very heavy cash position, just under 30%. The big new problem: are European banks spiraling out of control? He has been watching credit spreads widening globally for quite some time. Partially that is a function of the structure of the credit markets where a lot of high-yield bonds are held in ETF’s. The illusion exists that you can get instant liquidity. But the ETF has to sell the underlying security. With the new regulatory environment in the States and Europe, banks are less inclined to become liquidity providers in bond markets, so they have to find fewer and fewer buyers, and the major buyers of ETF’s are now in liquidation mode taking things down to valuations that compel people to purchase them. He is finally starting to see pretty good value in securities, particularly in the US. With credit spreads widening in Europe, etc., that stuff starts to begin morphing and becomes problematic.

Sold his position last year at around $26. Likes the company very much and is a big believer in the evolution and growth in the Internet of things. This company is a central component of that hub. They are dealing with competitive pressures out of China, and a lot of their major customers are building a lot of their own products internally. It was major currency headwinds that caused him to pull Sell. Good strong balance sheet and a good dividend yield. He expects he will own this again in the future, but doesn’t think the stock is going anywhere soon. We are still early in this correction.

The recent deal was viewed very negatively by the street. It is a huge investment on this company’s part compared to its market cap. A lot of Americans are going to be getting shares in the company, and are not very happy about it. About 50% of those shares are going to be recycled. The company is being viewed increasingly as empire builders.