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Energy. Feels the Bears are slowly throwing in the towel, in that oil inventories have been falling since May/June. The last remaining holdout is the IEA, which really destroyed sentiment prior to the OPEC announcement of the cut. Although the IEA is the gospel for many people, there ability to predict is very, very poor. We have seen the largest draw in US inventories since 1920, in the past 6 weeks. Inventory is falling because demand exceeds supply today. Looking out to 2018, 2019 and 2020, it is highly likely that we are going to have a challenged market in terms of supply. Within non-OPEC, the majority of growth is Brazil and Canada. Next year’s peak rate, Canada is falling and Brazil, at best, is flatlining. Within OPEC there have been 3 pillars of growth, Iraq, Iran and Saudi. It is believed that Saudi’s maximum capability is 10.6 million barrels, and they always bring down production this time of year. Iraq has been flat for 4 months now and are maxed out in terms of export capacity. Iran has only another 200,000 barrels a day before they are at pre-trade sanction levels, and to get above that level they need Western technology, Western money and time. OPEC largely looks tapped unless we get peace breaking out in Nigeria or Libya. He expects to see $60 oil next year and $65 in 2018. The market will continue to be short of oil unless you incentivize US activity, and that will begin at $50 oil. In order for activity to really increase meaningfully, you need it to hit at around $60 oil.

He would Sell this in favour of more conventional producers. It’s an awesome company, but from a stock perspective, he is kind of challenged to be asked to pay 27X cash flow. Feels the stock is approaching fair value.

A great company. Highly valued stock. Doesn’t see a lot of upside and there are other names he would prefer to own. He wouldn’t be buying this.

For frac sand, this is a company with the best balance sheet. Looking at 2018, there is going to be a ramp in terms of both volumes and product pricing power. A lot of frac sand mines have been operating at around 75% capacity. While the number of rigs and wells being drilled has fallen, the nature of the wells has changed, and companies are drilling longer laterals and fracing it more so there are more stages. For one well, you can use 200 train loads of frac sand. The demand for frac sand is increasing now, and could exceed current capacity so that new mines will be brought on. Although it is trading at the cheapest valuation, it is not cheap.

He owns this because he thinks it is a misunderstood dividend paying company that offers a pretty healthy dividend yield. About a month ago, they had 3 royalty streams with exposure to Western Canada, a market that has been under enormous pressure. The company is selling off the restaurant business, which they got a pretty good price. They will now be hugely reliant on Mr. Lube, which has had positive same-store sales for 20 years. Because they are selling off their restaurant, their payout ratio is in excess of 100%, but with the cash they are getting, they could overspend a minimum of about 5 years. Thinks they will make another acquisition. Feels the current cash flow is sustainable.

This has been slowly coming off the lows and is now at $2, which is still well down from where it was earlier this year. At $2, it is trading at about 18% free cash flow yield. Looking out, that is like 10X earnings on 2017, highly inexpensive relative to the underlying business fundamentals. An industry that is growing an organic rate of about 8%-10%. It is just going to take some patience.

This has one of the hired highest quality team’s asset basis in southern Saskatchewan. Have made an enormous amount of money for a lot of investors. Because of this, it trades at a higher multiple than some of their peers, but that is very much founded. ARC Resources (ARX-T) is selling off their Saskatchewan assets. There are very few names left with the financial capacity to go to the market to raise money. His guess is that Spartan would be one of them. He could see $4.82 share price in a year, a 40% upside.

(A Top Pick Oct 22/15. Up 7.41%.) Sold his holdings. There are still headwinds on the weakness of Western Canada, and the lingering fear of overcapacity.

(A Top Pick Oct 22/15. Down 18.86%.) Sold his holdings in the mid-$40 range. The focus is really on the dividend, so it is largely held by 2 private equity firms that are taking the dividend in stock giving it about an 8% dilution per year.

(A Top Pick Oct 22/15. Down 21.65%.) There is a stink in the industry due to Amaya and Intertain, and then you’ve got this little company that made a transformational acquisition of Open Bet. Prior to that, they had been posting organic growth rates of about 30% top line. The industry is growing at a minimum of 10%, and this company is growing at a premium to that.

High quality assets and high quality management. The stock has been working awesomely because they have been usurped by other companies such as 7 Generations which captivated people’s imagination by being able to grow production on a higher rate and was spending less relative to their cash flow. They have been fighting that, but people have been concerned that they have been so good that they had gotten too big to be able to grow at the same pace. He would buy this if you are bullish on natural gas heading into this winter. This is on his radar screen.

As a stock, this is mispriced. It is undervalued. In order for that situation to get rectified, they need people to care. About a month ago, they came to market to do a raise, and the reasons for doing it sounded really, really quite poor. This has tainted the institutional interest. The appetite for the stock is not what it was. It is going to take time.

A good little company. They made an acquisition that was kind of like a deleveraging story. The cash flowing asset was very limited in running room, in terms of inventory. Also, their market cap is too small for many professional investors to care. Until you can get the market cap up considerably higher, he doesn’t know if people will get very excited about the name.

He would sell this and either buy another name or a top performing energy fund. They still have too much debt. This is trading at about 3X debt to cash flow. He doesn’t see them regaining their lost multiples.

Put out a somewhat disappointing quarter in that they paid on top line. The EBITDA margin wasn’t as strong as the street consensus was, because they were spending more on Teletubbies as well as buying more content for DHX Television. He is hoping he can get this on a little bit more of a pullback. Looking out to 2017, the challenge in Canadian small cap is that there are very few companies that are able to put up positive 10%-15% organic EBITDA growth.