They are in the Cardium formation. They sold a non-core asset and will use the proceeds to accelerate their Cardium program. He expects production to rise from 4900 to 5100 boe by the end of the year. Cash flow this year was about 53 cents. The balance sheet is in good shape. His 12-month price target is $3.60. Yield 0%.(Analysts’ price target is $2.92)

Don Gray (from Payto Energy) is their CEO and a major shareholder. Their production is 71% natural gas. They are in Spirit River and also increasing in the Cardium area. Book value was $2.72 at the end of the year. Cash flow is 78 cents compared to a 90 stock price. Yield 0%. (Analysts’ price target is $1.66)

He would rather see this company stay independent--its metrics are better than either Precision or Ensign (the two companies bidding for Trinidad). However, he sees the combination of Trinidad with Precision is a good deal. He thinks Ensign might come back with a higher bid, creating a bidding rivalry. His price target is $7. If the company is bought by Precision, he would roll over, to become a shareholder of Precision. Note: Precision’s debt to equity is high, almost 1 to 1. Ensign offers a dividend but also has a much higher debt than Trinidad. Yield 0%. (Analysts’ price target is $2.34)

A lot of momentum in the first part of the year. They made three big deals. Largest player in the space. Everybody knows their Poker Stars brand and they want to use it to get into other segments. They are excited about this Canadian name. Trading at ten times next year earnings. Even as they are leveraged, he thinks the valuation is compelling.

They are digesting a lot of changes in their business. Many write downs on their books. They think there is going to be a rally in the TSX for Q4 in Canadian Banks and they think this stock should participate. Not many red flags when they looked at it. Trading at 7 times earnings with a 6% dividend yield.

Tech sector down in the US from its June peak and that translate into some Canadian companies in the sector like this one. They are due for another acquisition in his opinion. They are taking a new approach now with the new CEO focusing on return on invested capital. Very good long-term capital allocator. (Analysts’ price target is $57.00)

One of the curses of the pipelines is growth because it means that they have to raise capital. They have growth projects with the need to raise capital. They prefer Enbridge (ENB-T) as they came of the other side of this funding need now.