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3 top stock picks from Sprott's Eric Nuttall

Eric Nuttall is portfolio manager with Sprott Asset Management. His focus is on oil and gas stocks.

Top Picks:

Painted Pony Petroluem

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Painted Pony's highly strategic Montney gas asset will become very attractive as we get closer to West Coast LNG exports; it has a risked net asset value of $38.



Trican Well Services

Concerns about U.S. margin erosion and overcapacity are severely overblown; Trican trades at 3.2 times 2012 EV/EBITDA versus a trough historical multiple of 5 times.



Legacy Oil+Gas

Strong production growth and unbooked resource delineation will be the strategy for 2012; the company recently came out with a $40/share resource value.



Past Picks: Feb. 9, 2011



WestFire Energy

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Then: $8.29

Now: $5.13

Total Return: -38.11%



PetroNova

Then: $1.60

Now: $0.88

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Total Return: -45.00%



Bankers Petroleum

Then: $8.70

Now: $5.30

Total Return: -39.08%



Total Return Average: -40.73%



OUTLOOK

Demand for oil remains at a record high while supply from non-OPEC continues to stall and OPEC sits on historically low excess capacity. Meanwhile, the outlook for natural gas is bleak due to record warm weather and continued record production. Look for natural gas prices to fall below $2.00/mcf in the next few months.



Compiled by Franklin Cameron, BNN Market Call Tonight



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Also see:

3 top stock picks from Northland Wealth Management's David Cockfield

3 top stock picks from Castlemoore's Robert Sneddon

3 top stock picks from portfolio manager Paul Gardner

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