Oil Stocks: John Stephenson, First Asset Management

John Stephenson, senior vice president and portfolio manager, First Asset Investment Management announced his top three oil stock picks:

PetroCanada (NYSE:PCZ, TSE:PCA): with natural gas depressed, not much visibility in natural gas..large integrated oil & gas company..value throughout whole value chain..on valuations extremely cheap

Suncor (NYSE:SU TSE:SU): oil sands story..oil sands here to stay..with a little pullback in oil, attractive..no reserve life risk

Enurplus (NYSE:ERF TSE:ERF.UN): name that has attractive valuations and potential upside through oil sands..come off large because of American investor base..oriented to longer-term investors..

On Energy Trusts:
earlier generation trusts growth oriented..ones with too much debt or high payout ratio watch out..want stronger weighing towards oil..lower payout ratio..long reserve lives..smaller debt