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Market. BREXIT is not looking good and with earnings coming out, there is a chance we might see the market weakening a bit here. That usually pulls energy down even though fundamentals of energy remain strong. The time to buy was the tax loss selling of last year. If we pull back we will get another buying opportunity but not as good as December 23rd. Now that Muller is over, Trump needs things to tweet about and now it is OPEC and cutting back on production restrictions. If it happens repeatedly. The market could pull back. If stocks pull back as a result they could be a fantastic buy. He thinks we will see $70+ oil in Q4 and $80 in 2020. In April/May we could see significant erosion in stocks he discusses in this show and if you are going to buy them, do it then. He thinks we are in the early stages of a new bull market in energy and energy services stocks.
BUY
He really likes the story. They have a low decline rate and as a small cap they decided to pay dividends. They are in the northern part of Alberta. He has a $3.50 target on it. It is a good rate of return. Liquidity could be an issue.
BUY ON WEAKNESS
He has an $8 target on it. The dividend is a monthly 6.8% dividend yield that is attractive. They have 85% oil and 15% natural gas. The dividend payout is pretty low. They may raise the dividend again. The balance sheet is in good shape with 32% debt. If it backs off it is a tremendous buy.
WATCH
Unbelievable numbers. Maturities of debt in 2021. 2018 cash flow was a $1.05 due to hedges. They have always done well with debtors. The stock is ridiculously cheap. He is comfortable with it and at this price it is a bargain. The market is nervous regarding the extension of the debt.
BUY ON WEAKNESS
They had a dividend that got reduced. Income investors sold and sent it down. They have 65% debt. They need to sell about $20k in assets. They are doing an issue of more stock. The stock has retreated since. He owns it and thinks it is cheap. They should have sold their crown jewels to get back on track.
BUY ON WEAKNESS
70% fracking and then they have coil tubing. They are pretty cheap. They are doing reasonably well. It is really, really cheap. The two biggest shareholders are funds so liquidity is an issue Buy on weakness; he would have a target of $5.
BUY ON WEAKNESS
It is on his action alert buy list. It has a very good balance sheet. The book value is about $2.80. Probably the largest fracker in Canada. If we see $80 oil they will be a very big beneficiary. His target is $4.50 in 12 months.
BUY ON WEAKNESS
It is one of the big market caps. They pay an 8.2% dividend yield and he has a $50 target on it. They now have more holdings in Canada. People are worried about a dividend cut. He thinks this is a name to own; buy under $30.
WATCH
He is watching it. The company is not going to keep their volumes flat. The CEO changed. They are guiding down on production while spending on CAP-X. He is keeping an eye on them.
PAST TOP PICK
(A Top Pick Mar 16/18, Up 12%) The balance sheet is in good shape. They are now guiding flat. They will knock off some debt this year. Book value is $6.67 and he has a $7 target. He keeps on adding to it. They raised the dividend in the last quarter.
PAST TOP PICK
(A Top Pick Mar 16/18, Down 6%) They exceed his cash flow projections. They paid down debt. They are doing the right thing in paying down debt along the way. His target is $3.50.
PAST TOP PICK
(A Top Pick Mar 16/18, Down 29%) They are talking about de listing on the venture. They have no debt. He has a $2 target. If you do not have access to the AIM, you have to check with them for trading capability. He is going to hold. He thinks it is very cheap. He likes it a lot and does not like that they are de-listing the venture exchange. It is majority European owned.
WEAK BUY
The company is a decent sized company in the thermal oil side. Cash flow is only 6 cents. He has it going up to 11 cents. They will spend CAP-X on expansion. They have to service their debt. Book value is about 45 cents. It takes a long term perspective on this one. There is a lot of value in the ground. You want to have this for the long term but see his top picks for shorter term ideas.
BUY

It is one of his favourite names. The liquids will go up a little this summer. They are talking about 300 BOEs this year. This company is one of the largest he covers. 2% yield. It is the cheapest he has ever seen for one of these companies. Book is $28 and it got to $20. Below $18 it is a table pounding buy. This is a name you want own at under 20% debt.

BUY
He does not cover it. He tries to cover names that don’t get a lot of coverage and are quite attractive. The big thing about it is that it is a cash flow machine. It has been raising its dividend and if it breaks $40 it is a bargain. This and CNQ-T are go-to names for foreign investors. (Analysts’ price target is $54.00)

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