If you really like oil there's Enerplus. I saw a note from TD that made it sound attractive. You have to think oil is stabilizing at the least however.
I would add that you want to avoid producers with too much debt. They're dangerous.
OK, let's open things open to questions from users now. Let's start with Andrew:
If you can't fund yourself as a junior you're in trouble, even if you have good assets.
It takes money to turn those assets into cash.
And if they have debt, it's worse. So the plummet could be justified . NQ pls
I have seen it but I didn't buy it. I have concerns about the rate at which they are doing deals. These things are tricky and if you look at Alaris, a great team, they don't do many a year. Grenville is very active - too active in my view.
I prefer Benev Capital, or Diversified Royalty Corp. as it's changing its name to
They have acquired a royalty on a restaurant company and have a free cash flow yield of 7.5%. Dividends will begin next month.
I love restaurant royalties. Keg, A&W, Pizza Pizza, Boston Pizza - great dividends. NQ pls
I'm sure you know more about it than I do but looking at the chart it looks okay, not broken. But as I mentioned, companies that need capital (I presume they are not generating cash) can get roughed up in a poor market. NQ pls
Empire is a very small but profitable manufacturer of cool things like amusement rides, giant telescopes and hydrovac trucks. I own it, but the stock has had a big pullback.
They had a big seller crushing the bid for the stock, then their last quarter was weak.
But there's an accounting quirk that makes the quarter actually better than it looked. I bought recently.
Here's an interesting macro question from Steve:
Profit margins tend to peak with the market, PE ratios are high, and investors just seem exhausted.
We might have a sideways market for a while, which means only good stock picking will make money.
Yes, I own it and paid more than you so great call on your part. Pat Ross is a great turnaround artist in the oil patch. It's not liquid, that's the only problem. Tough to buy. NQ pls
So EL is trying to become the Neilson ratings for online advertising. They have small revenues and big name clients. I like the story for that riskier part of a portfolio - 1% of your assets for those who like these. The stock is weak because of warrants.
Investors in the last financings have warrants to buy stock at 50 cents.
So they sell their shares to raise the money to exercise the warrants. This hurts the stock price temporarily but puts cash in the company's coffers, which is positive. I bought more recently.
That suggests the floor is 50 cents. NQ pls
So, you must talk to your subscribers regularly and, by doing so, have a general sense of market sentiment. We’re in a corrective phase right now. So, I’m wondering, is bearishness – or at least nervousness – on the rise?
Yes, nervousness, frustration, the things that lead to mistakes are thick in the air.
Again, you have to go with the cycle.
Be a buyer when no one wants to buy - 2009 to 2012 in this latest case - and start raising cash in the later stages.
A correction is a lot easier to handle psychologically if you have 40% cash.
The point is, have money to buy stocks when no one is buying again. NQ pls
So is having 40% in cash right now a good general target?
I'm at 40% and while I don't like all the red ink on my screen, I'm not panicking about it. I can buy as good stocks get cheap (that hasn't really happened yet.) You should always have some cash, 10% or more. And more as the cycle gets on. NQ
So what exactly are you looking for as a signal to start deploying your cash again? Is there a certain decline in the market you are looking for? Certain P/E ratios emerging?
I'm just being selective, looking at unique names that few have heard of but that many soon will such as those I've mentioned. If there's a big pullback I'd buy aggressively but that hasn't happened other than the resource sector and I generally avoid it because I'm not good at commodities. NQ
OK, back to our users' questions
(To add to my last point there's always something going up). Macro is a very well run company.