Oil Stocks Norman Levine, Portfolio Management Corp.

Norman Levine, managing director, Portfolio Management Corp.

HARVEST ENERGY TRUST (NYSE:HTE TSE:HTE.UN): first energy trust to become integrated..not only produces oil and gas, but also bought Newfoundland refinery..timing of financing under less advantageous circumstances..

CANADIAN OIL SANDS (TSE:COS.UN): since price of oil has moved up, does trade at lofty level for good reason..oil sands producers that are already there are long-term annuities..no exploration risk..good for more than our lifetimes..they should trade at long-term valuations..Canadian Oil Sands is purest exposure..we also own PETRO-CANADA (NYSE:PCZ TSE:PCA)

PAST PICK: PETRO-CANADA (NYSE:PCZ TSE:PCA): we still own it..we still think it is severely undervalued..Terra Nova come back onstream..had some operational glitches in the past, hope that is behind them..

SHELL CANADA (TSE:SHC): reason that Shell Canada is trading higher than what Shell International offered is that investors believe that it was a low-ball price..stock is selling at about $43.50..would not be surprised if Shell International comes back with $45 offer

TALISMAN ENERGY (NYSE:TLM TSE:TLM): we own Talisman, we like it..going sideways with price of oil more than gas..Canadian and international..exploration exciting international..getting out of number of things that it does not think as core..sold Syncrude, royalty on Suncor..sells at lower multiples than others..