| BUY | | Tusk Energy | TSK-T | 3.000 | Good potential to the upside, assuming gas prices stay where they are. | 2008-06-23 | |
| BUY | | Galleon Energy Inc. (A) | GO.A-T | 19.380 | Among the cheaper plays, missed a couple of quarters. | 2008-06-23 | |
| BUY on WEAKNESS | | Talisman Energy | TLM-T | 23.220 | Just starting to turn the corner. | 2008-06-23 | |
| DON'T BUY | | Duvernay Oil Corp | DDV-T | 66.710 | Loves management and properties but cannot get to a valuation any higher than it is. ‘Could’ be a takeover. | 2008-06-23 | |
| DON'T BUY | | Baytex Energy Trust | BTE.UN-T | 34.470 | Could double reserves. Stock price showing some of this potential. Getting a little expensive. | 2008-06-23 | |
| HOLD | | Profound Energy Inc. | PFX-T | 5.000 | Solid management team. Little more room to move. | 2008-06-23 | |
| TOP PICK | | Daylight Energy Trust | DAY.UN-T | 12.040 | Trading at 4 times cash flow, a lot less than the average, plus 12% yield. Uses multi-stage Fracs. Have drilled two wells, have 25 follow up locations. It’ll keep going up. | 2008-06-23 | |
| TOP PICK | | Highpine Oil & Gas | HPX-T | 14.100 | Well-regarded management, starting to turn the story around. Multiples are unbelievably low. Catalyst is new management. | 2008-06-23 | |
| WAIT | | Bankers Petroleum | BNK-T | 2.010 | Wait until after the share consolidation. | 2008-06-23 | |
| HOLD | | Athlone Energy | ATH-X | 2.420 | Put themselves up for sale. They may sell it. Even if not, there’s still room for a $1 because of commodity prices and because of wells – they keep drilling. | 2008-06-23 | |
| Comment | | Second Wave Petroleum | SCS-X | 0.350 | Very interesting potential. If this first horizontal well works, this stock is going to go up. Very risky. | 2008-06-23 | |
| TOP PICK | | Canext Energy Ltd | CXZ-X | 0.760 | Have a very good land position. Have stumbled on a good light oil pool, drilled first well. Have a tone of follow up positions. Trading at multiples much less than current market. | 2008-06-23 | |
| TOP PICK | | Fairborne Energy Ltd. | FEL-T | 7.940 | Strong management team and a great suite of assets. Using new technology of multistage fracs and horizontal wells that opens up formations and gives much higher production. Going to be a beneficiary of changes in Alberta's royalty review because they are drilling deeper gas wells. Much cheaper than their peer group. | 2008-04-14 | |
| TOP PICK | | Twin Butte Energy | TBE-T | 2.750 | New drilling techniques are opening up formations giving much higher production to some areas that were not exciting before. Also a new addition to management is expected to increase production. Really cheap. | 2008-04-14 | |
| TOP PICK | | Kereco | KCO-T | 4.350 | Oil. Just sold off a lot of their assets, so is now a very streamlined Sturgeon Lake area in Alberta. No debt. Have cash for acquisitions. Great management team. | 2008-04-14 | |
| PAST TOP PICK | | Galleon Energy Inc. (A) | GO.A-T | 16.410 | (A Top Pick Dec 5/07. Up 16%.) Still buying. Just announced some financial numbers that weren't quite at their target, which worried the market. Trades at Price/Cash flows and NAV multiples the same as their peer group or less, but this management team deserves higher multiples. | 2008-04-14 | |
| PAST TOP PICK | | Delphi Energy Corp. | DEE-T | 2.300 | (A Top Pick Dec 5/07. Up 22%.)Very gas weighted. Still buying. If you see at approaching $3.00, consider Selling. The suite of assets they have are trading at very cheap multiples. | 2008-04-14 | |
| PAST TOP PICK | | Painted Pony Petroleum | PPY.A-X | 5.220 | (A Top Pick Dec 5/07. Up 69%.) Picked because the Bakken region in Saskatchewan was hot and the stock was overlooked. Crescent Point Energy (CPG.UN-T) just bought 20% of their stock. | 2008-04-14 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Natural Gas: - From a trading point of view, stocks will be higher a year from now but if you are trading on a day to day or week to week basis, she is holding off on some of the stocks just because of the big moves they have made recently. If you are an investor and are looking at a year from now, there will be higher prices. | 2008-04-14 | |
| PARTIAL BUY | | Iteration Energy | ITX-T | 6.790 | Very gas weighted. With their purchase of Cyries Energy, they have bolted from being a junior to intermediate ranks. Excellent assets. Had a big jump, so you need to pick your points to get in. If it dropped to $6 or below, then you could back up the truck. | 2008-04-14 | |
| BUY | | Penn West Energy Trust | PWT.UN-T | 29.930 | Just recently bought this. Made a lot of acquisitions lately, so she was cautious because of possible integration risks. Expect it to be trading a lot higher in the next year. Trading at a lot less than its peers. Note that issue. Expects new president will do a good job. | 2008-04-14 | |
| BUY on WEAKNESS | | Storm Exploration Inc. | SEO-T | 12.170 | Has moved up a lot in the last few months. Wonderfully well run. Have a wonderful land spread in the Montne region in northeast British Columbia. Excellent assets and good management. Trading at multiples quite a bit higher than their peers. | 2008-04-14 | |
| HOLD | | Highpine Oil & Gas | HPX-T | 10.220 | Penalized really hard with the Alberta royalty review. Recent changes will not affect them. She can calculate an NAV that is a little higher than today's price. Initial indications on the new president is that he is strong. If they can keep production levels up in Q2 there might be renewed interest in the company. Small to medium chance of a bounce. | 2008-04-14 | |
| BUY | | Talisman Energy | TLM-T | 20.060 | Was not doing well compared to where commodity prices where. New management. Tremendous amount of resource plays. Will be doing new presentations and outlining new strategies on May 21 so there will be a lot more interest in the company. | 2008-04-14 | |
| HOLD | | Nuvista Energy Ltd | NVA-T | 17.500 | Good management. Multiples are in line with their peer group. Looking for a higher price in a year. Great suite of assets and they'll keep growing them. | 2008-04-14 | |
| Comment | | Bankers Petroleum | BNK-T | 1.620 | Management has a very successful track record. Should do well with their assets. | 2008-04-14 | |
| BUY | | Profound Energy Inc. | PFX-T | 3.850 | Great management team with a good track record. Just acquired some companies so they are building up their asset base. From a multiple of cash flow and NAV, they're cheap. | 2008-04-14 | |
| BUY on WEAKNESS | | Opti Canada Inc. | OPC-T | 21.050 | Recently had a big move so you should wait for a pullback. Starting to get past the risks. There will be a lot of volatility. | 2008-04-14 | |
| Comment | | Baytex Energy Trust | BTE.UN-T | 24.080 | Just made an offer to purchase Burmis Energy (BME-T) 2 weeks ago. These are Pembina assets so it will be a little sizzle. The market had not been enamoured with this story but it is starting to turn around. From a trading point of view, wait for a pullback. Distribution should be safe. | 2008-04-14 | |
| Comment | | Terra Energy Corp. | TTR-X | 1.890 | Just sold a large section of their Montne holdings for $67.5 million to Crew Energy (CR-T). This will get them out of their debt problems. This should move the stock up. If you are trading, buy before the winter and sell right after the winter. From an investment point of view, that stock price should move higher now. | 2008-04-14 | |
| BUY | | Endev Energy | ENE-T | 0.910 | Cheap. Good management good assets. Seniors, intermediates and larger juniors have moved and the smaller juniors will now start to move. This will be one of the ones. Starting a new play in the Manville (?) formation, which is starting to work. If there is continued success here, the stock could be $1.50. | 2008-04-14 | |
| HOLD | | Daylight Energy Trust | DAY.UN-T | 9.390 | This will be another of the trusts that once the tide turns, the stock will move out. Strong assets strong management. | 2008-04-14 | |
| WAIT | | Duvernay Oil Corp | DDV-T | 46.680 | Unbelievable management. Huge land spread in Northeast B.C. Thinks it's a bit rich at these prices. If you're trading the stock, wait for a pullback. If you are a long-term investor, she thinks it could go a bit higher. | 2008-04-14 | |
| BUY | | TriStar Oil & Gas | TOG-T | 15.740 | In the Bakken area in southeast Saskatchewan. Had acquired tons of land so they have multi, multi, multi-years inventory of drilling. With oil prices where they are at, she thinks the stock should continue to go higher. If you are a trader wait for a pullback to the $14/$15 area on an up trend line. Not grossly overvalued. | 2008-04-14 | |
| BUY | | Berens Energy Ltd. | BEN-T | 0.880 | Market thought their debt was too high but with gas prices coming back up, the stock will go higher because analysts are going to increase their natural gas commodity forecasts which will decrease their cash to debt forecasts. | 2008-04-14 | |
| HOLD | | Suncor Energy Inc | SU-T | 109.750 | (Market Call Minute.) Likes it a year from now but thinks you can get it at a lower price. | 2008-04-14 | |
| BUY | | Petro-Can | PCA-T | 49.050 | (Market Call Minute.) Thinks that within a year it will finally turn around. | 2008-04-14 | |
| STRONG BUY | | Gentry Resources Ltd | GNY-T | 2.900 | (Market Call Minute.) They have so much land to work with and trading at very cheap multiples relative to their peers. | 2008-04-14 | |
| BUY | | Oilexco Inc | OIL-T | 13.990 | (Market Call Minute.) Just acquired a small company in the UK. It will go higher. | 2008-04-14 | |
| HOLD | | Harvest Energy Trust | HTE.UN-T | 24.150 | (Market Call Minute.) | 2008-04-14 | |
| Comment | | Cinch Energy Corp | CNH-T | 1.350 | (Market Call Minute.) Concerned that debt levels are a bit high. As capX increases, it should make the production higher that will increase cash flow and reduce debt. They have Montne B.C. that everyone is excited about. Hold or Sell. | 2008-04-14 | |
| HOLD | | Rider Resources Ltd. | RRZ-T | 5.580 | Being acquired by Nuvista (NVA-T), which has great management and enviable land positions. Intermediate gas weighted stocks have moved up considerably in the last few weeks, 20% and even up to 50% so there is a potential for some pullback. | 2008-02-22 | |
| HOLD | | Nuvista Energy Ltd | NVA-T | 15.730 | Acquiring Rider Resources (RRZ-T). Great management and enviable land positions. Intermediate gas weighted stocks have moved up considerably in the last few weeks, 20% and even up to 50% so there is a potential for some pullback. | 2008-02-22 | |
| BUY on WEAKNESS | | Delphi Energy Corp. | DEE-T | 2.170 | Had about a 30% moved in the last few weeks so there is some potential for a pullback. Would prefer to buy it closer to $2. | 2008-02-22 | |
| DON'T BUY | | Talisman Energy | TLM-T | 16.820 | The name is good along with all the fundamentals, but doesn't feel that it has turned the corner yet. Thinks it can go a bit lower yet. | 2008-02-22 | |
| WEAK BUY | | Accrete Energy Inc. | GZ-T | 4.690 | Gas weighted and debt level (2X debt to cash flow) is a little bit higher than average, so trades at a bit of a discount. Her comfort level is 2X or less debt to cash flow. Have a few thousand barrels a day so she is staying with it. Thinks the forecast for next year will be a higher stock price. You have to watch. | 2008-02-22 | |
| BUY | | Alberta Clipper Energy | ACN-T | 2.150 | Some amazing potential at Sylvan Lake. Experienced some operational problems, which made the stock price go down quite dramatically over the last couple of years. Very strong management. Multiples are good at 2.5 - 3X cash flow. Just announced a good size well at about 400 barrels a day. | 2008-02-22 | |
| BUY on WEAKNESS | | Bankers Petroleum | BNK-T | 1.160 | Currently at about 5000 barrels a day and company thinks it can double that by 2009. Using 10,000 barrels, she can see about $.25 a share giving it a cash flow multiple of 5X. Not bad, but that is already forecasting next year's cash flow so consider it a neutral valuation. Probably will be able to double reserves in the next 1 to 2 years, which would calculate out to a $2 or $3 on a reserve valuation. Would like to buy at about $1. | 2008-02-22 | |
| HOLD | | CHC Helicopters (A) | FLY.A-T | 30.250 | Possibly being acquired by First Reserve. There is always a little risk that they will not be able to raise the money but management of both companies are confident the deal will go through. If you own, Hold but watch and possibly sell closer to the takeover date if you are concerned. | 2008-02-22 | |
| BUY on WEAKNESS | | Birchcliff Energy Ltd. | BIR-T | 8.730 | Big holdings in Montne in the Peace River Arch district, which is an amazing land position. Stock price has moved up a lot. Would hold back for a better price, but thinks it's a good long-term play. | 2008-02-22 | |
| TOP PICK | | Arc Energy Trust Units | AET.UN-T | 23.400 | Her most favourite trust for 2008. Close to 50/50 on oil and gas. 10% yield. Management has a history of under promising and over delivering. Good entry point. | 2008-02-22 | |
| TOP PICK | | Highpine Oil & Gas | HPX-T | 11.720 | Some of the companies with deeper exploration targets were really hit with the Alberta Royalty Review. Rumours are that, after the Alberta election, there may be some closure on the unintended consequences. If so, companies like this may get a bit of a break. Trades at less than 3X price to cash flow and less than 1X debt to cash flow, which is cheap. Had some booming wells in 2006/2007. New management is well regarded. | 2008-02-22 | |
| Comment | | Galleon Energy Inc. (A) | GO.A-T | 16.880 | Some of the companies with deeper exploration targets were really hit with the Alberta Royalty Review. Rumours are that, after the Alberta election, there may be some closure on the unintended consequences. If so, companies like this may get a bit of a break. | 2008-02-22 | |
| TOP PICK | | Sabretooth Energy Ltd. | SAB-T | 2.300 | Relatively new gas weighted company. Already at about 3500 barrels a day. Very cheap at about 2X cash flow and 1X debt to cash flow. Good multiples and good metrics. At about 60% of their NAV. Good management. Had some asset backed commercial paper exposure of about $20 million but doesn't think they will have to write very much of it down. | 2008-02-22 | |
| BUY | | Endev Energy | ENE-T | 0.750 | Really respects management. They were shallow gas players and are breaking out of that. Thinks that some of the junior gas plays are starting to follow the intermediates up. Really cheap. | 2008-02-22 | |
| BUY | | Penn West Energy Trust | PWT.UN-T | 26.690 | In the middle of a merger with Canetic (CNE.UN-T), which will make them the biggest trust out there. Expect it will be among the leaders in the sector simply because of the size, management and the properties they have. | 2008-01-04 | |
| WAIT | | Bronco Energy | BCF-T | 10.000 | Focused on heavy oil sands production. In the early stage of delineating their resources. Have about 8 wells planned for this winter and are in the early stages. Hoping to get 400 to 600 barrels a day from each of these wells. If they don't have what the market has factored in, there could be some risk to the downside. Suggests that you buy a basket of oil sand stocks. | 2008-01-04 | |
| BUY | | Duvernay Oil Corp | DDV-T | 28.660 | Debt is creeping up, which is why the stock price has come off quite a bit. They are also gas weighted. If she were going to put her money with someone in these depressed gas prices, this management would be at the top of her list. | 2008-01-04 | |
| BUY | | Rider Resources Ltd. | RRZ-T | 4.050 | Gas. Debt is creeping up. In the Pembina area of Alberta. Superior management team. | 2008-01-04 | |
| WATCH | | Berens Energy Ltd. | BEN-T | 0.650 | Gas weighted. A little too much debt. Has come back a little stronger in the last few weeks. Watch the debt on this one. If gas prices do come back, this one should come back with a vengeance. Wait and see if her theory on stronger gas prices is correct. | 2008-01-04 | |
| BUY | | Precision Drilling Corp. | PD.UN-T | 15.400 | Service sector always gets hit the hardest but has the most potential for major wins/losses. Very capital-intensive. In this sector, the drilling rig sector would be considered high beta in that they go down and up the most. You want to own these at the beginning of the upturn. | 2008-01-04 | |
| TOP PICK | | Bonavista Energy Trust | BNP.UN-T | 28.700 | 12.5% yield. Management has had wide experience in acquisitions at cheap prices, optimizing them, and increasing their own production. Just acquired some assets from another company giving them about 4000 barrels a day. Good price. | 2008-01-04 | |
| TOP PICK | | Crew Energy Inc. | CR-T | 7.540 | 85% natural gas. Trades at 3X cash flow. Have less debt than their peers. Good management. Good price. | 2008-01-04 | |
| TOP PICK | | Action Energy Inc. | AEC-X | 1.550 | About 55% oil and liquid weighted. Good management team. Diversified core areas include oil and gas and the potential for a very large resource play in Saskatchewan. Really cheap. | 2008-01-04 | |
| BUY | | Progress Energy Trust | PGX.UN-T | 10.530 | Natural gas that she would look to own in 2008. Management deserves a premium multiple which it doesn't have at the moment. Great asset in British Columbia. | 2008-01-04 | |
| TOP PICK | | Galleon Energy Inc. (A) | GO.A-T | 14.020 | When the market turns, larger juniors will go up before smaller ones. Hurt because of Alberta's royalty review. Wonderful entry point. Very strong management. Over a million net undeveloped acres giving them years of work in very prospective areas. Relatively cheap compared to peers. She will be buying very soon. | 2007-12-05 | |
| TOP PICK | | Delphi Energy Corp. | DEE-T | 1.750 | Not very well covered by research. Feels NAV is closer to $3. Trading at less than 2X cash flow. Just made a strategic swap of assets and should give them even better success than their previous assets. Feels they have their debt under control. | 2007-12-05 | |
| TOP PICK | | Painted Pony Petroleum | PPY.A-X | 2.900 | Holdings in the Bakken area in Saskatchewan. The last pure player in this area. A bit early stage, so have to see this winter's drilling. Need to drill a lot of wells. Just raised some money and have no debt. Fairly illiquid. | 2007-12-05 | |
| PAST TOP PICK | | Vero Energy Inc. | VRO-T | 5.750 | (A Past Top Pick Aug 24/07. Up .05%.) Gas weighted. Could have been a Top Pick. Had some excellent drilling success. Management team consistently under promises and over delivers. Trades at less than 3X cash flow. Very cheap, relative to its peers. Strong Buy. | 2007-12-05 | |
| PAST TOP PICK | | Redstar Oil & Gas Inc. | RED-T | 0.560 | (A Past Top Pick Aug 24/07. Down 20%.) Almost 100% gas weighted. Zero debt. Strong management team. Trimming back a bit on their natural gas drilling because of gas prices. Still likes. | 2007-12-05 | |
| PAST TOP PICK | | Fairmount Energy Inc. | FMT-X | 1.190 | (A Past Top Pick Aug 24/07. Down 19%.) Had a couple of really good discoveries in August in the Gold Creek area. They are deep/expensive wells, but good potential for large wells. She is not selling her holdings. | 2007-12-05 | |
| BUY | | Endev Energy | ENE-T | 0.840 | Very strong management. Have been moving from shallow gas into deeper wells and a little more oil. Good prices. They will not have debt issues. | 2007-12-05 | |
| Comment | | Compton Petroleum | CMT-T | 8.140 | Debt level is quite high and much greater than the average. Although they have a solid team and a huge suite of assets, it is gas weighted. If she were getting into gas stocks right now, this might not be her first choice. In market upswings, affect will be greatest in companies with higher debt levels. | 2007-12-05 | |
| BUY | | Anderson Energy Ltd. | AXL-T | 2.790 | Very strong management team. Just did an acquisition to increase their Sylvan Lake natural gas assets. Thinks it's a very strong resource base. Not constrained by debt. Good price. | 2007-12-05 | |
| HOLD | | Birchcliff Energy Ltd. | BIR-T | 5.150 | Made an acquisition earlier this year and will be very strong. Good management. Not the cheapest in the sector, but are well valued. | 2007-12-05 | |
| PARTIAL BUY | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Oil/Gas Service Companies: - Drillers will go up before the other service companies, so you want to get into them first. Because the drillers have been hammered, you need to be careful timing wise. If you are looking at buying drillers, such as Precision (PD-T) and Ensign (ESI-T) slowly scale in and make sure debt is not a problem. | 2007-12-05 | |
| SELL | | Nexen Inc | NXY-T | 28.420 | Oil weighted. Budget for 08 shows flat production over 07. She would sell this one and switch into something similar such as Suncor (SU-T) or Canadian Oil Sands (COS.UN-T), which would still give you oil exposure. | 2007-12-05 | |
| BUY | | Crescent Point Energy Trust | CPG.UN-T | 24.800 | They have gone hard into the Bakkens in SE Saskatchewan. Recently did an acquisition of Innova Exploration, which had a very large suite of assets in this area. She believes this could add another $5 of value. She is a big fan of this company. | 2007-12-05 | |
| PARTIAL BUY | | Tusk Energy | TSK-T | 1.250 | Gas weighted. Has huge land acreage in northwestern Alberta. Expect prices on the stock will be a lot higher in a year. Solid management. The debt is fine. Very cheap multiple. | 2007-12-05 | |
| Comment | | Zargon Oil & Gas | ZOG.B-T | 29.580 | Just acquired Rival Energy (RGY.V-X) giving them a little more oil. Conservative management. Have a lot of good prospects. Would Buy or Hold. | 2007-12-05 | |
| HOLD | | Accrete Energy Inc. | GZ-T | 3.550 | Gas focused. Had an amazing discovery of a pool in the stock did really well. Have been working towards another couple of core areas but hasn't had as much success. Doesn't think they can get into trouble. Management team is good. | 2007-12-05 | |
| BUY | | Rider Resources Ltd. | RRZ-T | 3.620 | Has more than 3X debt to cash flow, so there is concern. Very strong management team. Focused on the Pembina area in Alberta. She doesn't think the management will allow it to go bankrupt. She recently purchased some shares in hopes of a turnaround. | 2007-12-05 | |
| DON'T BUY | | Silverwing Energy Inc. | SVW-T | 0.150 | Had a large farm with another company and had been having trouble with money raising and getting partners to drill. Would be really careful with this one as the TSX listing requirements are quite stringent and this company is under review now. If they are delisted, you are in big trouble. (Correction by BNN Dec 7/07. TSX completed its review in late September and found the common shares continue to meet their requirements.) | 2007-12-05 | |
| BUY | | Gentry Resources Ltd | GNY-T | 2.260 | Very solid asset base in SE Alberta. They have almost 300,000 net acres of undeveloped land. Valuation is probably about 2X cash flow. Can't foresee any debt problems. Could be a takeover target. | 2007-12-05 | |
| BUY | | Enerplus Resources Fund | ERF.UN-T | 39.800 | Merging with Focus Energy (FET.UN-T), which is great for them. Hadn't quite hit their production targets in the last couple of quarters but the new deal gives them good assets. | 2007-12-05 | |
| BUY | | Highpine Oil & Gas | HPX-T | 8.140 | Was decimated because of the Alberta royalty review. The stock price more than reflects the amount they are going to be able to invest next year as the cash flow will not be as great. Because it has come off so much, she would buy at these levels. | 2007-12-05 | |
| PARTIAL BUY | | Trinidad Energy Services | TDG.UN-T | 9.640 | Drillers are definitely the names you want to get into early on in the up cycle. Have about 110 rigs and 4 barge rigs. Their US exposure will definitely give them higher revenue than their competitors. They stock price is not reflecting this. | 2007-12-05 | |
| HOLD | | Regal Energy Ltd. | REG-X | 0.290 | Very small company and very illiquid. Increased their asset base in the last year and are increasing their production. Doesn't think they will have any trouble with debt. | 2007-12-05 | |
| BUY | | Crew Energy Inc. | CR-T | 7.800 | (Market Call Minute.) Natural gas. Likes this one very much. Very inexpensive relative to its peers. Good growth potential. Good management. | 2007-12-05 | |
| BUY | | Arc Energy Trust Units | AET.UN-T | 19.240 | (Market Call Minute.) Among the strongest management team and the trusts. They will carry on no matter what happens in the royalty trust world. Good asset base. | 2007-12-05 | |
| WAIT | | Pan Orient Energy | POE-X | 10.330 | (Market Call Minute.) Oil drilling in Thailand. Have had some great discoveries. Very strong management team. Good landholdings. Would wait to see if the price levels out a little bit. | 2007-12-05 | |
| Comment | | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Gas: - Cautiously bullish on natural gas after October. Predicting spot prices of $7 this year and $8 next year. | 2007-08-24 | |
| TOP PICK | | Vero Energy Inc. | VRO-T | 5.680 | Good management team. Share price has come down dramatically. Have about 40 drilling locations. Are starting to get active again. That levels are very reasonable. Less than 3X cash flow. | 2007-08-24 | |
| TOP PICK | | Redstar Oil & Gas Inc. | RED-T | 0.700 | An all gas company. Have a couple of locations in British Columbia and one in Saskatchewan. They use joint ventures letting a partner drill up their land, which reduces the amount of capital they have to spend. Almost no debt. Multiple is only 1.7. | 2007-08-24 | |
| TOP PICK | | Fairmount Energy Inc. | FMT-X | 1.490 | Their key asset is in Gold Creek. Company production is about 400 barrels a day. One of their tests last year was over 1000 barrels. Will start drawing some more wells in September. Trading at just under 3X cash flow. Asset value per share is $2.50. | 2007-08-24 | |
| BUY | | Kereco | KCO-T | 3.990 | Has put itself into a value maximization process. Ever since they announced that the stock price has come down. She believes the net asset value is much higher than the stock price and it will be taken over. | 2007-08-24 | |
| BUY | | Gentry Resources Ltd | GNY-T | 2.440 | Did something unique by drilling after the spring break-up when normally companies don't drill. Have had some good success. Drilled 10 wells in the Princess area of Alberta and each one tested over 500 barrels a day. She is now optimistic on this company. Cheap. | 2007-08-24 | |
| BUY | | Alberta Clipper Energy | ACN-T | 2.580 | Good management. Was trading at high multiples when it was spun out a couple of years ago. Had a couple of weak wells in January. Just got a rig and will be drilling 5 new wells in the Sylvan Lake area. Expect that some of them will be successful and everyone will be back in buying the stock. | 2007-08-24 | |
| SELL | | Bulldog Resources Inc. | BD-T | 6.180 | Stock is done really well and everyone on the street has it as a Buy. Likes management and assets are excellent. Average multiple is 5X and this is almost double that. As a value investor, it is too expensive. | 2007-08-24 | |
| BUY | | RSX Energy | RSX-X | 2.480 | Gas. They had an amazing discovery at Hinton Alberta a couple of years ago and since then they've increased their land holdings. Once we get past the next 6 weeks, gas prices will start recovering. | 2007-08-24 | |
