Recently doubled his position at $0.79. Weakness is from an overall weakness in junior coals as well as an underwriting at $0.75 several months ago which were selling off now.
Likes this because of the nature of their reserves (coal bed methane gas) and the relatively low payout ratio. Also likes the Fairquest Energy (FQE-T), an offshoot of this.
Conservatively run. Good management and has good international exposure. His first choice would be Toronto Dominion (TD-T) followed by CIBC (CM-T) with this being his 3rd pick.
(Was a Top Pick Apr 5/05. Up 32%.) If oil averages $50 a barrel, the net asset value of the stock could be $75/80. The cash flow per share, $10.25 this year and $12.50 next, it is one of the cheaper ones around. It looks like they are going to be able to do the Horizon field in the oil sands by themselves. Good long term holding.
The pricing outlook for coal is fixed through 2006, met coal at US$125 a ton. Looking out to '07/'08, there are worries about the level of steel production, the extent of exports from China and price weakness. This trust gives a wonderful yield, but how long will it last.
Torn on this stock. If you want the pure income, would go with BCE (BCE-T) or if you want growth, go with Telus (T-T). Pays a decent yield around the 4% level.
Getting close to its 5 year lows. China put on a 5% export tax on Chinese companies, but that didn't do much good, so another charge is being added to that. Given the long term demand/supply situation, the inventory problems will be short lived and this is a great buy.
(Was a Top Pick Apr 5/05. Down 30%.) Still likes. Likes the energy service space. Instead of selling the product by ones or twos, it looks like they may be selling in large groups of 100 per pop.
(Was a Top Pick Apr 5/05. Up 17%.) Would buy on weakness. There will be some weakness in the 2nd quarter because of weather related factors in Alberta. Would Buy more at $19.