RE Looks Good

GORDON CURRIE, Salman Partners (07/29/2010)
"The fact that the Canadian dollar has settled back below parity is a small positive for Canadian producers. Heavy oil prices continue to be a bright spot, though the differential widened out from 17.5% in the first quarter to 24.3% in the second quarter, a time when demand for heavy oil is normally seasonally higher. Circumstances continue to favor oil producers, including domestic stocks like BlackPearl Resources Inc. (TSX:PXX $3.05; BUY; Target Price: $4.50), Rock Energy Inc. (TSX:RE $5.10; BUY; Target Price: $5.75) and Twin Butte Energy Ltd. (TSX:TBE $1.33; BUY; Target Price: $1.60); and our TOP PICK, international explorer TransGlobe Energy Corporation (TSX:TGL C$7.66; NASDAQ:TGA US$7.37; TOP PICK; Target Price: US$9)."

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