Oil Stocks: Ian Nakamoto, MacDougall, MacDougall, MacTier

Ian Nakamoto, director of research, MacDougall, MacDougall, MacTier

On Specific Oil Stocks:

PENN WEST ENERGY (NYSE:PWE TSE:PWT.UN): current yields 11%, looks very attractive..we did not see income trust announcement coming so we got hit like everyone else..think it is a very good company..buy it..we still have constructive view

ENCANA (NYSE:ECA TSE:ECA): restructuring mode..reigned in growth..doing what shareholders want, increase dividends..it is the right move, shift in shareholders..those shareholders who want fast growth may want out, those who want dividends may come in..stock still off 52 week high, I think winter will be fine..by same time next year think stock will be up a fair bit

VERMILION ENERGY (TSE:VET.UN): whole income trust under cloud..what distinguishes them is operations outside Canada in France and Netherlands..

TALISMAN ENERGY (NYSE:TLM TSE:TLM): fairly flat for period of time, do not quite know why investors have not gotten on company..been one of our favorites companies..can see 10-15% upside in a year..expertise international oil & gas, deep natural gas..

EXXON MOBIL (NYSE:XOM) + IMPERIAL OIL (AMEX:IMO TSE:IMO): Exxon is a very well run company..do not see pressing need for Exxon to buy Imperial, not like Royal Dutch Shell and Shell Canada

TOP PICK PETRO-CANADA (NYSE:PCZ TSE:PCA): in the third quarter, they really started to increase production..East Coast problems solved, UK new production..next year they should have 25% growth in production, very large..into Russia, better to concentrate in Western countries but do not get to choose..