Q: sI’ve been heavily allocated to Canadian energy producers over the past year, primarily through ETFs and large-cap names.

What I haven’t seen yet is a meaningful breakout in the junior oil producer names (ie. leveraged to the price of oil) compared to what we saw with the juniors in the gold and silver market over the winter.

I’m interested in gaining exposure further down the market cap spectrum and would appreciate your perspective on where the best opportunities may lie in Canadian junior producers.

Specifically:
Which sub-$1 billion market cap Canadian oil producers do you see as most compelling today?

Are there particular companies you believe are attracting institutional interest or are positioned for a re-rating if oil prices are maintained or strengthened?

And more broadly, do you expect the juniors to lag this cycle, or is this simply a timing issue before capital rotates down the cap stack?

Any specific names or themes you’re watching in that segment would be greatly appreciated.

Q: Would it be prudent to reduce energy exposure at this time? My wives RRIF account holds ARX, TOU, & FRU they represent 21.8% of the portfolio. My RRIF account holds ARX, TOU, HWX, PPL, OBE, & PD they represent 33.3 % of the portfolio, PPL alone is 15% of the total portfolio. I know I should reduce this exposure what would you suggest?

Q: In a response to Chris on February 27th, you indicated OBE was OK but you thought TVE was better. I am curious what brought you to that conclusion. Maybe I get too caught up in simple metrics. For example, OBE has a PE of 1.0 and a PB of 0.52 compared to TBE where the same ratios are 4.3 and 1.3. I realize it is not as simple as that. I hope you can educate me on how to dig deeper into your preference for TVE. Thanks again for helping the little person.