Oil Stocks: Robert Floyd, R.A. Floyd Capital Management & Gordon Higgins, Sentry Select Capital Corp.
Robert Floyd, president, R.A. Floyd Capital Management talking about Mid and Large Cap Growth Companies
PENN WEST (NYSE:PWE TSE:PWT.UN): if one were a little more defensive and want to get cash up front, go income trust route..Penn West strong candidate, BAYTEX (NYSE:BTE TSE:BTE.UN) also..Baytex payout ratio somewhat lower, attractive..if you want more aggressive route, seniors include ENCANA (NYSE:ECA TSE:ECA), CNQ (NYSE:CNQ TSE:CNQ)..I would argue for seasonal trade..backdrop, of course, storage of gas and oil historically high levels, so unless really cold winter, burn some of that storage off..you could be adding to Penn West or Baytex, good entry point
FALCON OIL & GAS (CVE:FO): we have position..they have asset and equipment..interesting issue is wells are extremely deep and also high pressure..a little bit tougher to get equipment..all the same, big potential here..once company starts cash flow..if you owned it, good entry point..if you didn't own it, may be interesting junction to add some..huge reserves..we're banking on they should be able to complete..they have been able to complete some drilling, looking for casing
OILEXCO (TSE:OIL): have been few disappointments in past getting equipment..a question of getting drillings done in North Sea..strikes have delayed cash flow..some of their targets very interesting..company has not backed off production models, but likely will be delayed..stock under some pressure..interesting prospects going forward..I think it will participate in oil movement so definitely hold if you own..
CONNACHER OIL & GAS (TSE:CLL): has fairly interesting projects..oil sands being developed..looking to starting production fairly soon..good juncture..it's one I'd look at fairly closely..decent entry point
ENSIGN ENERGY (TSE:ESI): good seasonal play..strong ROE numbers..targets in high $20s..good shot to getting there if we have decent oil market
Gordon Higgins, vice president of equities, Sentry Select Capital Corp.
CANADIAN OIL SANDS (TSE:COS.UN): long-lived asset, perfect vehicle for income trust..free cash flow..at the vagaries of commodity prices..still increasing production
PETRO-CANADA (NYSE:PCZ TSE:PCA): spending heavily on international exploration and diversification..not likely to spin off into income trust..
ENCANA (NYSE:ECA TSE:ECA): I could pick great oil & gas stock but it still will be down if commodity is down..that's why I try to use 3-4 year timeline..good operator..
REAL RESOURCES (TSE:RER): it is a real value play, trading at 3.5X cash flow..sounds like a really good prospect..
FIRST CALGARY (TSE:FCP): stranded gas..cheap until they get gas out..not for the faint of heart
PETROBANK (TSE:PBG): new technology to get oil trapped under the ground..unproven yet..if it works, goes significantly higher..if it doesn't, more than overvalued
TALISMAN ENERGY (NYSE:TLM TSE:TLM): one of the cheapest oil & gas stocks..refocusing positive as they are selling assets and buying back shares..I like Talisman and we own it
PENN WEST (NYSE:PWE TSE:PWT.UN): if one were a little more defensive and want to get cash up front, go income trust route..Penn West strong candidate, BAYTEX (NYSE:BTE TSE:BTE.UN) also..Baytex payout ratio somewhat lower, attractive..if you want more aggressive route, seniors include ENCANA (NYSE:ECA TSE:ECA), CNQ (NYSE:CNQ TSE:CNQ)..I would argue for seasonal trade..backdrop, of course, storage of gas and oil historically high levels, so unless really cold winter, burn some of that storage off..you could be adding to Penn West or Baytex, good entry point
FALCON OIL & GAS (CVE:FO): we have position..they have asset and equipment..interesting issue is wells are extremely deep and also high pressure..a little bit tougher to get equipment..all the same, big potential here..once company starts cash flow..if you owned it, good entry point..if you didn't own it, may be interesting junction to add some..huge reserves..we're banking on they should be able to complete..they have been able to complete some drilling, looking for casing
OILEXCO (TSE:OIL): have been few disappointments in past getting equipment..a question of getting drillings done in North Sea..strikes have delayed cash flow..some of their targets very interesting..company has not backed off production models, but likely will be delayed..stock under some pressure..interesting prospects going forward..I think it will participate in oil movement so definitely hold if you own..
CONNACHER OIL & GAS (TSE:CLL): has fairly interesting projects..oil sands being developed..looking to starting production fairly soon..good juncture..it's one I'd look at fairly closely..decent entry point
ENSIGN ENERGY (TSE:ESI): good seasonal play..strong ROE numbers..targets in high $20s..good shot to getting there if we have decent oil market
Gordon Higgins, vice president of equities, Sentry Select Capital Corp.
CANADIAN OIL SANDS (TSE:COS.UN): long-lived asset, perfect vehicle for income trust..free cash flow..at the vagaries of commodity prices..still increasing production
PETRO-CANADA (NYSE:PCZ TSE:PCA): spending heavily on international exploration and diversification..not likely to spin off into income trust..
ENCANA (NYSE:ECA TSE:ECA): I could pick great oil & gas stock but it still will be down if commodity is down..that's why I try to use 3-4 year timeline..good operator..
REAL RESOURCES (TSE:RER): it is a real value play, trading at 3.5X cash flow..sounds like a really good prospect..
FIRST CALGARY (TSE:FCP): stranded gas..cheap until they get gas out..not for the faint of heart
PETROBANK (TSE:PBG): new technology to get oil trapped under the ground..unproven yet..if it works, goes significantly higher..if it doesn't, more than overvalued
TALISMAN ENERGY (NYSE:TLM TSE:TLM): one of the cheapest oil & gas stocks..refocusing positive as they are selling assets and buying back shares..I like Talisman and we own it
posted by Spelunca at 11:01 AM
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