Oil Stocks David Cockfield, Leon Frazer & Associates on Canadian and American Large Cap (Part II)

CANADIAN OIL SANDS TRUST (TSE:COS.UN): never one of my particular favorites because I buy trusts for income..essentially what you’re buying for oil sands trust is long call on oil..just have to wait a little bit for money..

SUNCOR (NYSE:SU TSE:SU) is an integrated..different type of company..reasonably pricey..I felt Suncor got too much promotion..

PETRO-CANADA (NYSE:PCZ TSE:PCA): you may have some takeover activity with some big multinationals coming in and picking off some of our companies..we own Petro-Canada, core stock..good long term investment

INTEROIL (AMEX:IOC TSE:IOL): operating in New Guinea..refinery and drilling potential initially..geography very complex..solid management but upside lost in geology..speculative

PRIMEWEST ENERGY (TSE:PWI.N): management’s okay..I think there are others I would more likely recommend

BERENS ENERGY (TSE:BEN): very much a junior..cost has hit them somewhat..not a stock that we hold..little too far out on risk scale for our purposes

BAYTEX (TSE:BTE.UN): got in $10-11 range..heavy oil..reserves understated because drilling in homogenous area..heavy oil flows by pipe..conservative payout ratio..we like it, I own it personally

TOP PICK PENN WEST ENERGY (TSE:PWT.UN NYSE:PWE): once it got under $37, put a little money in it..originally oil company into trust..it’s a $5 billion company..5 million acres land..diversified oil & gas..payout ratio reasonable..oil hedged 42% @ $70..

TOP PICK TALISMAN (NYSE:TLM TSE:TLM) is totally different..international..risk factor rises..bound to go up sooner or later..outside oil patch..problems in North Sea but short-term..good returns..balanced

TOP PICK ENCANA (NYSE:ECA TSE:ECA): oil sands..would rather participate through Encana..selling <10X multiple, less than NAV..pure producer..been in Encana for a while..hedged quite nicely..well managed company..CONOCO-PHILLIPS (NYSE:COP) shows management capability..