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COMMENT

Trican Well Services (TCW-T) vs. Trinidad Drilling (TDG-T). Trinidad is still going through strategic alternatives. The founder quit suddenly. Trinidad still has a large exposure to the Permian, so this is a detractor. Trican is pure play Canada and should work in its favour. He would take Trican over Trinidad

oil / gas field services
COMMENT

Is in the penalty box. Has not reliably hit guidance. Until they show they can hit guidance, lack of confidence will remain. He thinks Q2 will be a slight miss. He thinks they should buy back shares.

Energy
TOP PICK

He is incredibly bullish on oil. Meg offers the highest leverage in cash flow relative to oil price. They are a 100% pure play heavy oil producer. Meg offers massive leverage. Stock is down 16% this week. Sees over 100% upside if $80 oil. (Analysts’ price target is $11.17)

oil / gas
TOP PICK

Merger is not popular with Raging River shareholders. However, Baytex shareholders are saying it is a wonderful deal. Have added a free cash flow machine in their Viking asset. This name has been beaten down by Raging River shareholders. The deal gets voted on mid August. At $70 oil he has a $7.00 target and at $80 oil he has a $10.00 target. That is 60% to 130% upside. (Analysts’ price target is $6.00)

oil / gas
TOP PICK

They are the number two in Canada. Should be able to monetize some assets and should be debt free. The name is trading at just over 2 times EBITA. At $70 oil, he sees a 102% upside. At $80 oil, he sees an upside of 172%. (Analysts’ price target is $2.41)

oil / gas
COMMENT

Market. Shift in politics moving to the right. We are seeing some barriers. Green economy has grown tremendously and moved toward the mainstream. Interesting to watch Trump with coal, and Doug Ford moving backwards on green energy projects. This is a short-term slowdown. Long-term, tremendous investment opportunities.

Unknown
COMMENT

Big companies moving to clean energy. Car industry is going full steam ahead. Every major car company is moving on hybrid vehicles, and this is a major change. Easy to get caught up in short-term political cycles. Right now, he’s looking for opportunities that are a little undervalued. Long term, no question that this is the direction the economy’s going. Not a question of if the economy will change, but how quickly it will. Tread carefully for now, over next election cycle. Emerging markets like China and India are investing in green energy. Bit of a lost opportunity for Canada. We had been at the forefront, but now we’re taking three steps backward.

Unknown