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| Dennis Da Silva of Middlefield Capital Ltd. |
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| ddasilva@middlefield.com |
| TOP PICK | Teck Resources Ltd. (B) | TCK.B-T | 35.540 | Take advantage of the volatility currently going on. Good possibility that they will reinstate the dividend this year. Clean balance sheet, good growth and generating free cash flow. Could see more downside on copper but very confident on metallurgical coal. | 2010-02-10 | ||
| TOP PICK | Crew Energy Inc. | CR-T | 14.090 | Bullish on gas and is expecting an average of $7.15 this year. Great exposure to the Montney and the emerging play in Alberta and BC. Great exposure and leverage and good cost discipline. Good truck access. Also have oil in their Princess play. | 2010-02-10 | ||
| TOP PICK | Comaplex Minerals | CMF-T | 7.980 | A theme on acquisitions in the gold space and Agnico-Eagle (AEM-T) would be a prime candidate in this case as they are in the same area and infrastructure is in place. Agnico-Eagle owns 12%. | 2010-02-10 | ||
| PAST TOP PICK | Canadian Oil Sands Trust | COS.UN-T | 28.620 | (A Top Pick March 26/09. Up 12.53%.) A core holding. Still a Buy. | 2010-02-10 | ||
| PAST TOP PICK | Iamgold Corp | IMG-T | 15.090 | (A Top Pick March 26/09. Up 41.31%.) Still a Buy. | 2010-02-10 | ||
| PAST TOP PICK | Canadian Natural Rsrcs | CNQ-T | 69.100 | (A Top Pick March 26/09. Up 30.51%.) Still a Buy. | 2010-02-10 | ||
| HOLD | Suncor Energy Inc | SU-T | 31.250 | This is a tough one. 3rd fire in 5 months. Missed on the quarter so there is a synergy issue with Petrocan. | 2010-02-10 | ||
| BUY | San Gold Corporation | SGR-X | 3.580 | Go producer of Manitoba in the Rice Lake project. Junior producer that is always on the acquisition screen. Keep finding more high-grade gold and adding more ounces to the reserve life. | 2010-02-10 | ||
| BUY | First Quantum Minerals | FM-T | 74.200 | Copper producer with assets are in West Africa (DRC) so you have to accept political risk. Government pulled a project as they were not moving fast enough on developing. Now in arbitration. Rumours that government is seeking another partner. Still one of the lowest cost emerging copper producers globally. Still buying because it is a $100 stock. | 2010-02-10 | ||
| BUY | Crescent Point Energy Corp | CPG-T | 38.040 | Growth comes from high net back light oil in the Bakken. One of the premier light oil intermediate companies. Good yield. A strategic long-term holding. | 2010-02-10 | ||
| SELL | Talisman Energy | TLM-T | 17.800 | Missed their earnings. Clearly in a “wait and see” mode because the company has gone through a wholesale change in objectives under new management. Trying to build for the long-term with resource plays with multiple years of potential inventory. | 2010-02-10 | ||
| SELL | First Uranium Corporation | FIU-T | 1.410 | Have a deal with Gold Wheaton (GLW-T) where they have an up-front payment to sell their gold production from their uranium mining. A possible penalty of about $42 million US if they are not in production by June from one of their mines. There are conflicting stories. Still a shortfall problem in the 2nd quarter and a bigger one by the 4th. | 2010-02-10 | ||
| BUY | Osisko Exploration Ltd. | OSK-T | 8.450 | Given the size (9 million ounces of reserve) of its gold deposit, it would be quite an addition to some larger major gold producer. Prefers Detour Gold (DGC-T). | 2010-02-10 | ||
| BUY | Detour Gold | DGC-T | 16.350 | Ontario gold exploration. Likes better than Osisko Exploration (OSK-T). | 2010-02-10 | ||
| HOLD | Cameco Corporation | CCO-T | 28.670 | This is clearly your proxy for uranium. Cigar Lake has continually had delays and I'm now looking at 2014 but he is less optimistic. Also in Kazakhstan, which has political risks. | 2010-02-10 | ||
| BUY | Questerre Energy | QEC-T | 3.220 | Exploration in Quebec for the Utica Shale and has had a good run. Probably the largest emerging Junior in that entire shale gas play. Partners include Talisman (TLM-T) and Forrest Oil. Still early days for this play but this is the best way to play the junior side. | 2010-02-10 | ||
| Comment | Paladin Resources | PDN-T | 4.290 | Cameco (CCO-T) indicated they would like to make an acquisition but thinks this would be too large even though this company is in areas where they aren't. | 2009-11-18 | ||
| BUY | Cameco Corporation | CCO-T | 31.890 | If you have a good view on uranium, this is the proxy. Has a history of missing numbers and operational problems. Going into a new zone that is riskier in terms of water encroachment. If you want uranium, this should be one you own. | 2009-11-18 | ||
| BUY | San Gold Corporation | SGR-X | 3.400 | Gold producer in Manitoba. On the acquisition trail to find the next mine to develop. Good management. | 2009-11-18 | ||
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| BUY | Osisko Exploration Ltd. | OSK-T | 7.940 | Building a gold mine in Malartic and will probably be a 600,000 ounce producer per year. Realized $230 million through warrants, which will give them about $1 billion in cash. The mine will cost about $600 million to complete. Could be a takeout target. | 2009-11-18 | ||
| HOLD | Galleon Energy Inc. | GO-T | 5.050 | Like other gas producers, had a good pop through the summer. Focused in the Montney. A “wait and see” picture. 19,000 BOE's production per day. Transitioning from an explorer into a developer that usually results in some aches and pains. | 2009-11-18 | ||
| HOLD | Hudbay Minerals Inc. | HBM-T | 15.520 | Gold/copper. Just lost their CEO and CCO but in good hands with the VP of operations. Likes the gold aspect to it. | 2009-11-18 | ||
| BUY | Thompson Creek Metals | TCM-T | 12.250 | Purest play on molybdenum. A core holding. Strong balance sheet and good cash holdings. Thinks the steel market looks better going forward. | 2009-11-18 | ||
| WATCH | Methanex Corp | MX-T | 18.940 | Decent yield of 3.6%. Has some growth potential. Weakness in fertilizers has had an impact. Good core holding. Would consider buying what he saw some strength in this market. | 2009-11-18 | ||
| TOP PICK | Canadian Natural Rsrcs | CNQ-T | 71.980 | (A Top Pick Oct 21/08 Up 31.2%.) Horizon, their oil sands project, is still ramping up. Didn't meet expectations in Q3 but this is one you have to keep with a long-term horizon. Estimating they will generate $3 billion in free cash flow in 2010 with oil at $80 US. One of the best growth stories out there for a senior producer. | 2009-11-18 | ||
| TOP PICK | Gran Tierra Energy Inc. | GTE-T | 6.030 | International oil producer with their primary asset in Colombia and Peru with about 15,000-16,000 barrels, which can ramp up to about 20,000. Good cash flow. Fantastic balance sheet. No debt. About $140 million in cash. | 2009-11-18 | ||
| TOP PICK | Wild Stream Exploration Inc. | WSX-X | 4.990 | Junior oil/gas producer in Alberta and Saskatchewan. | 2009-11-18 | ||
| PAST TOP PICK | Encana Corp | ECA-T | 57.850 | (A Top Pick Oct 21/08. Up 11.27%.) | 2009-11-18 | ||
| PAST TOP PICK | Canadian Oil Sands Trust | COS.UN-T | 30.800 | (A Top Pick Oct 21/08. Up 8.3%.) | 2009-11-18 | ||
| TOP PICK | Canadian Oil Sands Trust | COS.UN-T | 25.990 | (A Top Pick Oct 21/08. Down 11.07%.) Lagged peer group because of Sycrude’s coker taking longer to turn around as well as the distribution cut. Great opportunity for long-term investors. Multi-decade long assets. | 2009-07-16 | ||
| TOP PICK | Paladin Resources | PDN-T | 4.340 | Very few good quality companies in uranium. Tremendous growth opportunity. Thanks they will triple production in the next 3 or 4 years. Producing in Namibia and started their mine in Malawi. Good cost structure. Uranium is in the low $50 range and is looking for this to move up. | 2009-07-16 | ||
| TOP PICK | Gran Tierra Energy Inc. | GTE-T | 4.000 | All this production is in Colombia with a base that is growing 20,000 barrels a day. In the 2nd half of this year they have a very aggressive exploration program to drill some very high impact wells. | 2009-07-16 | ||
| PAST TOP PICK | Canadian Natural Rsrcs | CNQ-T | 61.560 | (A Top Pick Oct 21/08. Up 8.89%.) Premier Canadian oil/gas company. Their oil sands project Horizon is firing up and building towards 110,000 barrels by the end of 2010. Would add to this during the summer doldrums. | 2009-07-16 | ||
| PAST TOP PICK | Encana Corp | ECA-T | 55.810 | (A Top Pick Oct 21/08. Up 3.66%.) Held up remarkably well given that it is a natural gas producer. Has oil sands to look forward to as a future driver. | 2009-07-16 | ||
| BUY | Iamgold Corp | IMG-T | 11.270 | Higher operating cost structure giving it fantastic leverage to gold prices. Did an acquisition that helps fill the gap for growth in the next couple of years. Not sure what happens 2, 3, 4 years down the road for growth. Well positioned for the near and midterm. | 2009-07-16 | ||
| BUY | Petrobank Energy and Resources | PBG-T | 33.840 | 3 key components with one never getting fully realized at any one time. 1) 76% interest in Petrominerales (PMG-T) in Colombia. 2) Heavy oil technology (THAI) in their White Sands oil sands project. 3) South east Saskatchewan Bakken production. | 2009-07-16 | ||
| HOLD | Pacific Rubiales Energy Corp. | PRE-T | 10.720 | Very well run operation. Production in Colombia with exploration in Peru. Significant growth path for production. Pipeline constraints but they are working through that. | 2009-07-16 | ||
| Comment | Detour Gold | DGC-T | 9.330 | Gold project in Ontario. Looking for a definitive feasibility study this year and hopefully they will start a process to get permitting to build a mine. | 2009-07-16 | ||
| BUY | Rubicon Minerals Corporation | RMX-T | 3.100 | Gold exploration in the Red Lake area. Very early stage but the most advanced exploration project. Has been a spectacular performer. Speculative. | 2009-07-16 | ||
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| BUY | FNX Mining Company | FNX-T | 7.410 | Nickel producer but with the shutdown of the mines they are now essentially a copper producer. Building their Levack footwall mine that will be a combination of gold and copper. This will drive production next year. Well financed. | 2009-07-16 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Oil. Continues to look for oil to continue to improve to something in the $80-$90 US range by the end of the year and looking for an average of $72. | 2009-07-16 | ||
| WAIT | Vero Energy Inc. | VRO-T | 2.940 | Will be driven by natural gas prices. Did a tremendous job historically in growing on a per-share basis. Stumbled last year and coming into 2009 in maintaining an aggressive capital program in the face of weakening prices. Got a little over leveraged and had to do an equity issue to fix the balance sheet. | 2009-07-16 | ||
| BUY on WEAKNESS | Lake Shore Gold | LSG-T | 2.670 | Gold production in Timmins Ontario. Has done a good job. Partnered with West Timmins (WTM-T). What drives the stock is their exploration program. | 2009-07-16 | ||
| BUY on WEAKNESS | West Timmins Mining Inc | WTM-T | 1.600 | Gold production in Timmins Ontario. Has the opportunity to look for significant new resources. | 2009-07-16 | ||
| BUY | Crescent Point Energy Corp | CPG-T | 33.900 | Probably the #1 oil operator in the Bakken space. Very high net back oil production. Probably sustainable down to $40US per barrel. 8.2% dividend is still safe. | 2009-07-16 | ||
| Comment | Hathor Exploration Ltd. | HAT-X | 1.890 | High quality advanced exploration in uranium. Has no resource to mine as yet. Made an offer for acquisition of Northern Continental (NCR-X) but doesn't think they have much of a chance. | 2009-07-16 | ||
| Comment | Husky Energy | HSE-T | 30.950 | Good defensive stock to own especially in low oil prices but he sees oil prices improving, especially in senior names. Shifted their capital program more to Southeast Asia. Have indicated a desire to spin it out. | 2009-07-16 | ||
| Comment | Sherritt International Corp. | S-T | 5.400 | Lots of leverage to Cuba but US is making overtures. This is reflected in the stock. Risks with having Cuba as a joint venture partner. Recent instability in their project in Madagascar. Suffers from diversification discount since they have energy, electrical generation and mining. | 2009-07-16 | ||
| DON'T BUY | Paramount Resources | POU-T | 6.000 | 90% natural gas. Chronic under performer in terms of being able to deliver growth on a per-share basis. Great way to play natural gas but if you are a fundamental investor that likes good costs discipline, this is not for you. | 2009-07-16 | ||
| BUY | Osisko Exploration Ltd. | OSK-T | 6.820 | Open pit gold mine requiring moving of houses and buildings. Now waiting for final permit for construction. Will probably finish this by the end of the year. Will be in the sweet spot when they get into production. | 2009-07-16 | ||
| BUY | Thompson Creek Metals | TCM-T | 13.160 | Did well coming off of its bottom. Molybdenum has recovered well. Moly is a specialty area and you don't have to many choices and this company is the proxy for it. | 2009-07-16 | ||
| HOLD | Baffinland Iron Mines Corp. | BIM-T | 0.450 | (Market Call Minute.) Trying to find a partner for a $4 billion project. | 2009-07-16 | ||
| BUY | Pengrowth Energy Trust | PGF.UN-T | 8.670 | (Market Call Minute.) Seems to be a recycling of the management team getting ready for a conversion back to a corporation. | 2009-07-16 | ||
| HOLD | Denison Mines Corp | DML-T | 1.990 | (Market Call Minute.) Has gone through the worst part. Seems to be some good exploration that seems to be coming out of Wheeler River. | 2009-07-16 | ||
| BUY | Opti Canada Inc. | OPC-T | 1.600 | (Market Call Minute.) Looking for a recovery in oil prices and with their addition of new water handling he expects some wrap up in production finally. | 2009-07-16 | ||
| BUY | San Gold Corporation | SGR-X | 2.330 | (Market Call Minute.) Looking for some more exploration success at the hinge zone. | 2009-07-16 | ||
| TOP PICK | Canadian Natural Rsrcs | CNQ-T | 53.190 | (A Top Pick May 1/08. Down 38.3%.) Thinks oil will go to $75 and expects an improvement in natural gas. Horizon project has just gone on and is ramping up to 100,000 barrels a day for this year giving it significant free cash flow. The only senior to have per share growth built into it this year. | 2009-03-26 | ||
| TOP PICK | Canadian Oil Sands Trust | COS.UN-T | 26.000 | Now that Suncor’s (SU-T) composition has changed this is the premier way to play oil sands. Has significant distribution upside as oil recovers back to $75. Well-run operation. No immediate capital spending plans for 2009 and very little in 2010. Long-term asset. 2.3% distribution. | 2009-03-26 | ||
| TOP PICK | Iamgold Corp | IMG-T | 10.550 | Likes gold stocks because they have under performed what gold has accomplished over the last 1.5 years. Likes the multiple expansion potential as the market starts to accept the reality that gold is not going back to $600-$750. On the acquisition trail but could be acquired themselves. | 2009-03-26 | ||
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| PAST TOP PICK | Duvernay Oil Corp | DDV-T | 82.990 | (A Top Pick May 1/08. Up 73.1%.) Acquired by Royal Dutch Shell. | 2009-03-26 | ||
| PAST TOP PICK | Osisko Exploration Ltd. | OSK-T | 5.950 | (A Top Pick May 1/08. Up 40%.) Malartic gold mine in Quebec of 600,000 ounces when it is in full production with average cast costs of under $400 US an ounce. Feasibility study and numbers came in better in terms of reserves and economics. Put financing in place on the equity side. | 2009-03-26 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Energy: $75 oil on average this year and will overshoot that given where we are now. Expects $80-$85 by the end of the year and settle back down to $75 next year. Natural gas is more difficult but wouldn't be surprised to see continued pressure through the rest of 2009. $5.50 is a near-term average so not sure if it will be a sharp correction or a gradual increase. | 2009-03-26 | ||
| BUY | Petro-Canada | PCA-T | 35.480 | Possible takeover by Suncor (SU-T). Currently about a 3% gap between the 2 stock prices. Owning this would be a good move in anticipation of then owning Suncor. Fully expects deal will go through. | 2009-03-26 | ||
| SELL | Oilexco Inc | OIL-X | 0.145 | Ran into severe problems when Royal Bank of Scotland pulled their loan. No money left for the shareholders and he is surprised that it still trades at $.11. | 2009-03-26 | ||
| BUY | TriStar Oil & Gas | TOG-T | 9.800 | Closely associated with Crescent Point (CPG.UN-T), which is now converting to a corp. Recently made a sizable acquisition from Talisman (TLM-T) in southeast Saskatchewan. A premier Bakken player that is still generating profitable returns, even at $40 oil. | 2009-03-26 | ||
| Comment | Questerre Energy | QEC-T | 1.330 | Partnered with Talisman (TLM-T) and Forrest Oil (FST-N) on Utica shale gas play in Quebec. Biggest of the juniors in this area. Price of gas is somewhat irrelevant for this play as it is a long-time play. It won't happen in the next year or two. Very early stage so it is a risk. If you have tolerance for risk, an interesting way to do it. | 2009-03-26 | ||
| BUY | Husky Energy | HSE-T | 27.320 | Has always associated it with low growth situations but in this type of environment, a great defensive position. Very clean balance sheet and exposes you to the upside up oil prices. In a rising commodity price environment, their retail side will get squeezed a little more. | 2009-03-26 | ||
| BUY | Talisman Energy | TLM-T | 13.680 | Encouraged by what they are doing so far such as their sale of their southeast Saskatchewan asset for a good price. Part of their plan to refocus on unconventional assets. Very clean balance sheet. Love their hedges. | 2009-03-26 | ||
| Comment | Connacher Oil and Gas | CLL-T | 0.750 | Oil sands developer using steam assisted gravity. Has been hit hard. Have a refinery in the US. But natural gas as a hedge for gas prices. Surprised that it hasn't responded more to the recovery in oil prices. | 2009-03-26 | ||
| BUY | Vale S.A. | VALE-N | 14.860 | You play this for where you think iron ore prices are going to go. Encouraged by direction of negotiations. Prices for met coal are starting to show up. If you could see iron ore prices settle out in the same kind of correction, closer to 150-140 there would be significant upside to the stock. Well run company. | 2009-03-26 | ||
| BUY | Crescent Point Energy Corp | CPG-T | 27.560 | Announced they are converting back to a corp. Maintaining the distribution in the form of a dividend. One of the 1,000 lb. Gorillas in the Bakken play in Saskatchewan. | 2009-03-26 | ||
| Comment | HBP NYMEX Nat'l Gas Bull+ | HNU-T | 2.210 | Natural gas bull ETF. He expects an average of $5.50 on natural gas this year. Thinks conditions are building for an improvement and sustainability in prices. Thinks there is better leverage and opportunity in owning equities instead. | 2009-03-26 | ||
| DON'T BUY | Iteration Energy | ITX-T | 1.030 | In the penalty box. Highly regarded management. Did a major acquisition last year, natural gas focused and leveraged, which ended up as poor timing. Also had stagnant production from the acquisition. Encouraged by the reserve growth. You can make a good return by sticking to clean balance sheets. | 2009-03-26 | ||
| PARTIAL SELL | Galleon Energy Inc. | GO-T | 3.850 | In a “show me” state. Have had good assets, very large land-based, good prospect inventory. The most recent one that has been promoted is in the Montney, Alberta but they are just off the major trend. Balance sheet is stretched. If you own, consider reducing your holdings. Be patient. | 2009-03-26 | ||
| Comment | Opti Canada Inc. | OPC-T | 1.280 | CEO was the driving force and he is leaving so speculation is that the company is for sale. Disposed of 15% of their Long Lake oil sands project. Nexen (NXY-T) would be the logical buyer. May have to re-drill some of their well pairings, which is a big capital cost. Can you handle this? | 2009-03-26 | ||
| SELL | Bronco Energy | BCF-T | 0.500 | Heavy oil in Alberta. Looked quite promising in 2008. Have always had problems with water. Debt is an issue. | 2009-03-26 | ||
| BUY | Crew Energy Inc. | CR-T | 4.150 | (Market Call Minute.) Even though there is still a bit of a concern, it has been beaten up enough that you get very good value for it. | 2009-03-26 | ||
| BUY | Suncor Energy Inc | SU-T | 29.900 | (Market Call Minute.) Fundamentally the acquisition of PetroCan (PCA-T) will be a good one. | 2009-03-26 | ||
| BUY | Painted Pony Petroleum | PPY.A-X | 2.550 | (Market Call Minute.) Seriously looking at buying this one again. Gives you some good exposure to northeast BC as well as the Bakken. | 2009-03-26 | ||
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| SELL | Compton Petroleum | CMT-T | 0.940 | (Market Call Minute.) Has been a troubled company. Seriously disappointing on per share growth. Now going through transition with the CEO leaving. | 2009-03-26 | ||
| HOLD | Fairborne Energy Ltd. | FEL-T | 3.250 | (Market Call Minute.) On the fence with this one. If anything he would say “Hold but not Buy”. | 2009-03-26 | ||
| BUY | Nexen Inc | NXY-T | 21.290 | (Market Call Minute.) A defensive stock for this environment. | 2009-03-26 | ||
| TOP PICK | Canadian Natural Rsrcs | CNQ-T | 45.100 | (A Top Pick Oct 30/07. Down 40%.) Horizon project should hit 75% of production capacity of 77,000 barrels next year. Execution risks are very low. Looking for 25% growth per share next year. Strong balance sheet. | 2008-12-18 | ||
| TOP PICK | Encana Corp | ECA-T | 54.500 | One of the premier senior producers in Canada. Natural gas weighted right now but a great long-term inventory in the oil sands. Likes the deal with ConocoPhillips (COP-N) allowing them to refine bitumen without having to build their own upgrader. Good dividend. | 2008-12-18 | ||
| TOP PICK | Goldcorp Inc | G-T | 34.490 | One of the senior premier gold producers in Canada. Lowest cost structure. Looking for a 50% growth over the next few years. Likes the leverage to gold. | 2008-12-18 | ||
| PAST TOP PICK | Equinox MineralsLtd. | EQN-T | 1.200 | (A Top Pick Oct 30/07. Down 75%.) Copper producer from Zambia. Copper prices are down 60% so far. Fire created some operational problems for about 6 months. Just going into production now. Being squeezed. Once Copper prices go above $2, it's a great stock to own. Considers it a takeover target. | 2008-12-18 | ||
| PAST TOP PICK | JNR Resources Inc | JNN-X | 0.190 | (A Top Pick Oct 30/07. Down 94%.) Uranium. Still one of the top tier juniors. Partnered with Denison (DML-T). If you own, consider taking some tax loss. | 2008-12-18 | ||
| BUY | Canadian Oil Sands Trust | COS.UN-T | 19.190 | Based on $50US oil, they projected cash flow per unit of $1.80. Currently distributing $3, which would indicate there could be a 40% cut if oil stays at $50. Thinks oil will be $75 and $3 distribution would be sustainable. 15.2% yield. | 2008-12-18 | ||
| BUY on WEAKNESS | Crew Energy Inc. | CR-T | 4.500 | Great asset package in the Montney play. Had a hard time generating per-share growth. 08 was a bit of a turnaround. Looking for some modest growth going into 09. If you own, hang on to it and play the dips. | 2008-12-18 | ||
| BUY | UEX Corp. | UEX-T | 0.610 | Uranium exploration/development. Partnered with Ureva (?) one of the largest global uranium companies. In the Athabascan basin. Great exploration prospect. | 2008-12-18 | ||
| BUY | Connacher Oil and Gas | CLL-T | 0.660 | Because of low oil prices and high differentials they are probably not making money on a net basis after operating costs, so they cut back production on their 1st phase and delayed the 2nd phase. Still like this one. Great growth profile. | 2008-12-18 | ||
| BUY | Questerre Energy | QEC-T | 2.000 | Oil/gas producer. Main claim to fame is their prime acreage in the Utica shales in Quebec with partners Talisman (TLM-T) and Forest Oil (FST-N). Exploration so subject to volatility and speculative. | 2008-12-18 | ||
| DON'T BUY | Galleon Energy Inc. | GO-T | 4.260 | Oil/gas producer of around 19,000 BOE's a day. About 60% natural gas. A “show me” stock as it fell hard in late 07 and 08 due to missing their targets. Haven't delivered the per-share growth the market was looking for. Significantly attractive assets. | 2008-12-18 | ||
| DON'T BUY | Oilexco Inc | OIL-X | 1.100 | Thinks they sold about a quarter of the company to get the extension on debt as they go through the sale process. Market was not happy with that. Not a fan of the North Sea. | 2008-12-18 | ||
| DON'T BUY | Bow Valley Energy | BVX-T | 0.170 | Non-operating company in the North Sea, (Not a fan of the North Sea.) so you are subject to the timing/business plan of the operator. | 2008-12-18 | ||
| DON'T BUY | Denison Mines Corp | DML-T | 0.830 | An Achilles heel with this company is concern over its debt covenants. Because production is lower than projected, there are CapX cuts and higher operating costs. | 2008-12-18 | ||
| DON'T BUY | Delphi Energy Corp. | DEE-T | 1.000 | Junior oil/gas producer with a gas weighting. Extremely cheap at about 1.5X cash flow and about 2.5X 09 cash flow. The general environment for natural gas really skews you to the top tier names so stay with the bigger names until the market changes its views on juniors.. | 2008-12-18 | ||
| PARTIAL BUY | Birchcliff Energy Ltd. | BIR-T | 4.680 | Heavily involved in the Montney play in Alberta. Produces about 12,000 barrels a day. Natural gas weighted. He is under weighted on the stock but you want to have some exposure. Leverage is a bit of a concern sold they are spending cash flow that mutes any growth into next year. Expecting some growth in 09. | 2008-12-18 | ||
| BUY | Progress Energy Resources | PRQ-T | 8.250 | Merging with ProEx Energy (PXE-T), which he likes. This brings certainty to the trust. | 2008-12-18 | ||
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| BUY | Argosy Energy | GSY-T | 1.630 | (Market Call Minute.) Very small Junior that goes into the exploration part of your portfolio. Expects good tremendous growth over the next year. | 2008-12-18 |
