Oil Stocks: Bill Harris, David Baskin
Bill Harris, partner and portfolio manager, Avenue Investment Management
On Shell Canada and Royal Dutch Shell
Royal Dutch Shell is going through process to tighten up control and corporate structure..bringing in Canadian assets..had problem with writing down reserves by about 40%..oil sands assets key piece..looks like there will be a change in which oil sands account for reserves..Royal Dutch Shell can add literally billions of barrels..need higher premium..would be paying about $15/barrel..existing shareholders have an argument to make that because this is not a third-party transaction, parent has access to information..that’s where leverage comes in..by proxy, Royal Dutch Shell is committed to oil sands..100% dedicated (now) to this project..
On Oil:
cyclical business..always have to remember that it’s a commodity..I’m still hoping oil holds above $55..shoulder season, weaker period
David Baskin, president, Baskin Financial Services
ENSIGN ENERGY (TSE:ESI): I think it’s really cheap..whole industry oversold in my view..may have to put up with a bad quarter or two..9X earnings cheap..what matters is where natural gas is 5 years from now..all companies recognize they need to build productive capacity
TALISMAN (NYSE:TLM TSE:TLM): we like stock..trimming..whether it’s being groomed for sale we don’t know..but good to maximize assets..we think Talisman undervalued..reasonable value $22
On Shell Canada and Royal Dutch Shell
Royal Dutch Shell is going through process to tighten up control and corporate structure..bringing in Canadian assets..had problem with writing down reserves by about 40%..oil sands assets key piece..looks like there will be a change in which oil sands account for reserves..Royal Dutch Shell can add literally billions of barrels..need higher premium..would be paying about $15/barrel..existing shareholders have an argument to make that because this is not a third-party transaction, parent has access to information..that’s where leverage comes in..by proxy, Royal Dutch Shell is committed to oil sands..100% dedicated (now) to this project..
On Oil:
cyclical business..always have to remember that it’s a commodity..I’m still hoping oil holds above $55..shoulder season, weaker period
David Baskin, president, Baskin Financial Services
ENSIGN ENERGY (TSE:ESI): I think it’s really cheap..whole industry oversold in my view..may have to put up with a bad quarter or two..9X earnings cheap..what matters is where natural gas is 5 years from now..all companies recognize they need to build productive capacity
TALISMAN (NYSE:TLM TSE:TLM): we like stock..trimming..whether it’s being groomed for sale we don’t know..but good to maximize assets..we think Talisman undervalued..reasonable value $22
posted by Spelunca at 1:46 AM
0 Comments:
Post a Comment
<< Home