COMMENT

Oil Stocks. Western Canada needs around $60 oil to really work. In Cdn$ terms we almost hit that about a month ago, and that is enough to make people feel good and to believe that it is no longer a total disaster. Then the oil price slips, but the feeling is an awful lot better. But it doesn’t mean that we are actually off to the races.

COMMENT

Gold. There has been such an amazing move in gold. He likes to look at this in Cdn$ terms, and we are really at all-time highs. If you have your gold mine in Canada with the Cdn$ costs, you are very profitable and you had a good run. Shouldn’t be too overenthusiastic.

COMMENT

As the Cdn$ got so cheap, he was more concerned about buying things here first, in Cdn$ terms, because then he gets the bounce in Cdn$ which gives you a gain in oil, but also a currency kick.

COMMENT

This can become a great Canadian mid-cap producer in 2-3 years’ time, and then you get the valuation bump as well. However, with what they actually have today, the stock is expensive. The other problem is that they have had a run. Gold has had the run, and the Cdn$ has had the run at the Cdn$ gold price. Because of that, he is cautious at this time.

COMMENT

He loves this at $15. Because other people drill their land, you don’t quite know how the world is going to play out. The gas market has had a great jump in gas, and this looks a lot better. It is a great thing to own long-term, but he would just like to try and steal it if he can be patient. He came within $2 in the spring.

COMMENT

A very consistent company over time, and construction is relatively consistent. This is all about their future book. They have debt outstanding. Sometimes the market gets really worried that they have debt, but he thinks it is a very solvent company. It seems hard for the company to grow dramatically, so in really bad times, he is able to buy the bonds with about an 8% yield. Any time the stock is $9-$10, it is interesting, but on a risk/reward basis, where he can buy the bond at 8% it is an incredible way to invest. He just sold his bonds which he felt were fully valued.

COMMENT

If there was a tight group of 5 companies that he would find investable right now, this would be in the next level up. Their projects are good, but he never gets a feeling they are super fantastic.

COMMENT

Going back 3 years, we had an incredible bull market in gold. All sorts of properties that probably shouldn’t have gone into production, went into production. Huge amounts of money got spent in the industry with not really an internal rate of return. The whole gold sector has bounced back. This one is a whole mixed bag, and to go into all those projects that they acquired at the height of the bull market, there are some real question marks.

PAST TOP PICK

(A Top Pick July 28/15. Up 48.84%.) He was playing defence on these 3 stocks picks, just looking for a way not to get creamed. This has now become a hot stock, so he is no longer in it. Dividend yield of about 3%.

PAST TOP PICK

(A Top Pick July 28/15. Up 21.97%.) He was playing defence on these 3 stock picks, just looking for a way not to get creamed. The stock had a bounce and he sold into it. Dividend yield of 7%.

PAST TOP PICK

(A Top Pick July 28/15. Up 8.92%.) He was playing defence on these 3 stock picks, just looking for a way not to get creamed.

COMMENT

There are things on how this company evolved that he doesn’t like. This has a great business in the Port Chicago pipeline, and historically they have taken their money and kind of blown it. Their LNG workings on the West Coast seems to always have pipeline issues in the forest, and along with lower global natural gas prices he questions if it gets built. Prefers TransCanada (TRP-T). Dividend yield of about 9.5%.

COMMENT

This has done an incredible job of production and getting their costs down. We have a real use of natural gas for electricity air conditioning generation across North America, so gas prices are up. This is not the day that you want to buy gas stocks.

COMMENT

This is the most leveraged to the pure oil price. If we had a real rally in oil prices, into the $60-$70 range, this stock would be going to $15. However, if it gets in trouble and if oil goes the other way, he owns the bonds instead.

COMMENT

Whitecap (WCP-T), Crescent Point (CPG-T) or Cardinal Energy (CJ-T)? Crescent Point and Whitecap are very similar and would be on his list. This company really seems to be hunkering down and trying to work with what they have. Very disciplined. This is the one that he would gravitate towards.