October 1st, 2012 
Category: 
It’s time to update the rankings for our friendly stock picking competition. Each blogger picked 4 stocks (or ETFs) they think will outperform in 2012. Q3 results have improved over Q2 but still reflect the disinterest of Mr. Market in the energy sector.
Eagle Energy Trust (TSE:EGL.UN)
YTD ROI = +8.19%
In my opinion, Eagle Energy Trust remains one of the best oil weighted dividend payers. The company’s production is 98% weighted to oil. However, its total payout ratio will end up above 100% this year due to ramping up production from the latest field it acquired. EGL currently sells its oil at a slight premium to WTI contrary to Canadian producers facing double discounts. Haywood securities recently initiated coverage on EGL with a $14 target price.
Poseidon Concepts (TSE:PSN)
YTD ROI = +24.20%
Poseidon Concepts has been the best pick so far this year. I still believe in PSN outperforming this year and the current share price is potentially a great opportunity to add some. Management is working on diversifying its customer base by entering other sectors and the pie is so big I believe it will take a while before margins start to compress.
Palliser Oil and Gas (TSXV:PXL)
YTD ROI = -21.69%
Palliser Oil and Gas is a 98% weighted heavy oil junior producer, it is my personal pick to play the heavy oil sector. The company is executing its growth plans nicely by increasing production and acquiring strategic heavy oil assets. PXL is currently undervalued and so is every other oil and gas producer out there. I still believe it’s only a matter of time before the SP of PXL hits $1 again. Palliser is on track to exit the year at more than 2,800 boepd and potentially average more than 3,200 boep in 2013.
Second Wave Petroleum (TSE:SCS)
YTD ROI= -65.78%
Second Wave Petroleum is the reason I am sitting at the bottom this year. But it was a gamble I took on a takeover which never materialized. It was either going to be 1st spot or last spot. It’ll be the last one since the gamble did not work. SCS has a great land position at Swan Hills targeting the Beaverhill Lake Group and has been ramping up its production until they hit their debt limit. Unfortunately, a failed takeout combined with debt destroyed the share price bringing my ROI down in the process. A recovery in price is dependent on strong oil prices because the company is limited in its capital spending.
Can I blame it all on SCS?
As you can see from the chart above, the collapse of SCS in Q2 pretty much sealed the deal for last place this year. Europe’s debt woes combined with uncertainty about the global economy don’t help either. I still hope for a partial recovery in Q4 for PXL especially if the market gets reassured a bit on Europe leaving QE3 to reverse the sentiment of fear.
The competitors also posted their top picks along with the results:
| Rank | Site | Q3 2012 Return (%) |
| 1 | Where Does All My Money Go | 21.99 |
| 2 | Intelligent Speculator | 17.52 |
| 3 | My Traders Journal | 10.67 |
| 4 | Dividend Growth Investor | 10.39 |
| 5 | Dividend Mantra |
5.32 |
| 6 | Million Dollar Journey | 4.46 |
| 7 | The Passive Income Earner | 1.34 |
| 8 | The Wild Investor | -2.21 |
| 9 | The Financial Blogger | -11.04 |
| 10 | Beating The Index | -13.77 |
dont worry, mitch. if the competition was “chick magnet” I’m guessing you’d be #1.
enjoy the week.
Thanks John
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I hold in my portfolio 2 of your picks: EGL.UN and PSN , luckily I booked some gain and sold LNV at $10.57 . Actually EGL.UN and PSN my only 2 “minors” in this sector (ohhh, forgot about the biggest last year loser MQL
)…others I hold SU, CNQ, HSE, COP.N/PSX…
Good to hear you got out of LNV above $10 Gibor!
EGL and PSN are great companies that one day will play with the majors.
MQL requires patience, the stock will get recognition sooner or later. The CEO is doing an excellent job building the company imo, check out today’s NR.
Cheers,
@Mich, thank you for reply.
Luckily I didn’t buy too much of SkyWest and after last year stock crush I have even less MQL, so I even don’t bother with this one.
Mich, what is your opinion about PSX (COP’s spin-off)? It’s doing not too bad and they just increased dividends by 25%
Gibor, what’s the symbol of PSX? I don’t think I know them…
PSX Phillips 66 is a holding company. The Company is engaged in producing natural gas liquids (NGL) and petrochemicals. The Company operates in three segments: the Refining and Marketing (R&M) segment, the Midstream segment and the Chemicals segment. The Refining and Marketing (R&M) segment purchases, refines, markets and transports crude oil and petroleum products, mainly in the United States, Europe and Asia, and also engages in power generation activities. The Midstream segment gathers, processes, transports and markets natural gas, and fractionates and markets NGL, predominantly in the United States. The Chemicals segment manufactures and markets petrochemicals and plastics on a worldwide basis. The Company’s operations encompass 15 refineries with a gross crude oil capacity of 2.8 million barrels per day, 10,000 branded marketing outlets and 7.2 billion cubic feet per day of gross natural gas processing capacity.
Gibor, I am not familiar with this company at all, can’t give you an opinion
[...] with other notable bloggers. Some of those notable bloggers include The Financial Blogger, Beating The Index, The Passive Income Earner, Dividend Mantra along with blogger, columnist, TV personality and host [...]
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