Josef Schachter - Oil and Gas, Service Sector

Maison Energy Monthly
December 12, 2012
U.S. “Fiscal Cliff “ Bickering Should Weaken
Stock Markets Into Year End – Tax Loss
Selling Season Is Also Over Shortly
What’s Inside:
Happy Holidays
from Maison
Placements and
Schachter Asset
Management.
We wish you and
yours a Happy,
Healthy and
Prosperous
New Year
1.
BUY During Upcoming Shakeout Before
Christmas
2.
Maison Universe High Impact Drilling Watch
List
3.
Terminating Coverage:
 Vero Energy Inc. – Vero Was Taken Over In
A Friendly Deal By TORC Oil & Gas Ltd. In
November 2012.
4.
Top Picks:
 Domestic: Long Run Exploration (LRE)
 International : Petromanas Energy (PMI)
5.
Recommended Buy List
 Buy Favourite Stocks During End Of Tax
Loss Selling Season Over The Next Few
Weeks.
6.
Coverage List
Josef I. Schachter, CFA
403.264.4413
[email protected]
Source: The Economist, December 1, 2012
Maison Placements Canada Inc.
2
U.S. “Fiscal Cliff “ Bickering Weakens Stock Markets
– Tax Loss Selling Season Over Shortly
The ongoing bickering between the
Democrats and the Republicans has not
made any realistic headway in avoiding the
upcoming fiscal cliff. The President wants a
tax hike on the rich – to fulfill his election
promise and to raise $1.6T over the next 10
years in more tax revenue and has offered
limited budget cuts. The Republicans have
offered $800B of revenue adjustments
(closing of tax loop-holes and reducing or
capping deductions) and a similar amount
from
budget
cuts
including
from
entitlements. What galls us, is that neither of
these solutions materially cuts the ongoing
$1T of annual deficits. None of the politicians
want to tell the public that the Government
they want, they can’t afford and what they
can afford from current revenues, is a much
smaller Government and a reduced level of
services. None of the politicians are showing
a reality based solution.
The fiscal cliff which would cut $100B
immediately from each of Defense and
Medicare and raise $500B in additional taxes
for a total of $700B and is forecast to drag
the U.S. economy back into recession. These
cuts of over 4% in GDP would hit an
economy barely growing at 2%. What is
needed is meaningful cuts in the over $1T
budget
deficit
for
the
current
year – be they $400B or $600B. But the
deficit cuts must be rational based solutions.
If this occurs, the U.S. dollar would rally. A
move over 81.47 in the Index (now 80.06)
would highlight fiscal prudence and/or a
flight to safety if the fiscal cliff occurs.
Offsetting this, watch for a breach in the
Euro. A decline < 1.266 (now 1.297) would
highlight Europe's problems are much worse
than the U.S.’s.
U.S. Dollar Index
$81.47
$USD
Source: Stockcharts.com, December 7, 2012
Euro Dollar Index
TARGET
Source: Stockcharts.com, December 7, 2012
Maison Placements Canada Inc.
3
The U.S. needs a crash fiscal diet if it is to solve its profligate spending. Growth in the U.S. is being held
back by the uncertainty of the fiscal picture. The citizens of the U.S. know that the Government has out
of control spending, but those benefitting from the largesse don’t want the punch bowl withdrawn. Let
someone else face the cutbacks and of course - go after the wealthy. It is a captivating lullaby that the
President has been singing. Our view is that the grown-ups have to take over. Simpson-Bowles was a
good start for the conversation, but more needs to be done and the pain must be shared. For the U.S.
fiscal house to return to a balanced budget may take into the end of the decade – but it can be done.
When the entitlement programs were introduced by President Johnson in the 1960’s the life span of
beneficiaries was only a few years. Today life spans are much longer and 20+ years of benefits is not
unheard of. The first move must be to raise the age of entitlement as is being done across Europe and
to freeze entitlements with no further cost of living allowance increases.
Other recommendations would include:
1. Cap deductions by taxpayers to some number that allows middle class and lower incomes the most
benefit – maybe a total cap of $25,000. Let the taxpayer choose which deductions they want:
mortgage interest deductibility, charitable donations etc. This could raise >$300B annually.
2. Put in some form of consumption tax. We in Canada have a 5% GST and our economy is handling
this tax. When implemented, personal and corporate rates were lowered. In the U.S. they could
implement a 5% VAT (much below the confiscatory rates in Europe of >20%) and once a federal
budget surplus arises, lower personal and corporate tax rates. This could raise >$400B annually.
3. Major corporations negotiate with their vendors for lower costs and higher quality of products. Why
doesn’t the U.S. Government do like Apple, Amazon and Target? The U.S. does not negotiate with
its vendors including pharmaceuticals companies used for Medicare and Medicaid programs. This
could save >$100B annually.
Shanghai Stock Exchange Composite Index
The U.S. must face its fiscal crisis
now, as to delay further jeopardizes
its credit rating and could cause
another political battle when the
debt ceiling is hit again.
With China having significant
economic problems and a new
untried leadership trying to get
growth rising sufficiently to help rural
China, they cannot be expected to
save the world’s economy in 2013.
The Shanghai stock market is at new
lows for the year and with the
demand weak from Europe and the
U.S. and the ongoing islands dispute
with Japan, the Index could breach
the 2008 lows.
Q1/13
TARGET
Source: Stockcharts.com, December 5, 2012
Maison Placements Canada Inc.
4
Economic Releases Warn of More Trouble Ahead
We continue to watch for “at the margin problems” in the world economy that would highlight an
upcoming synchronized slowdown and problematic period. These are some of the recent events
that are weakening the underpinnings of the current positive consensus view and may indicate that
many parts of the world will face a pronounced slowdown and possible recession in 2013.
 Europe


Greece is undertaking another round of debt restructuring – their third in recent times.
With 26% unemployment in the most recent release, up from 25.3% in the prior month, to
gain funding from the EU, Greece is moving to borrow $10B Euros. They’re offering private
debt holders 30-40% of face value in exchange so that they can lower their overall debt
owed. The bonds are trading at much lower levels recently so for speculators who bought
at the lows (in the teens) a big windfall, but for those who purchased at parity many years
ago – a very painful hit. As long as Greece can borrow money, the Government will do
whatever is needed to keep getting the loans, and this Ponzi scheme will continue. At
some point this game of ‘push the can down the road’ with goal posts of performance
moved as Greece regularly fails to meet deal requirements – will end. Maybe after the
German elections in September 2013, Merkel will take a stand and force Greece to meet
its agreed obligations or leave the union.
Spain is nearing requirement of a bailout as unemployment reaches 25% and youth
unemployment exceeds 50%. Large bailouts of the banks are now occurring, and
Catalonia’s independence pressure and a weak federal government are pushing the
country to need the bulk of Europe’s bailout funds. What is most disconcerting, is that
other countries may also need access to these funds which will be soon depleted.
Portugal, Italy and France all need help and may soon request it. What is shocking in this
situation, is that the weak countries must fund their shares of the bailout funds, which
they don’t have. If they don’t fund the EU bailout funds then they may not be able to
receive support from the funds when they need them – quite the dilemma.
 U.S.


While the headline jobs report last Friday showed an increase of 146K jobs, and a decline
in the unemployment rate by 0.2% to 7.7%; the bulk of the job growth was in retail and
service jobs for the holiday season. Manufacturing jobs fell 7K during the month.
Additional negatives were, the number of discouraged workers rose by 20% in November
to 979K, and the household survey which counts the number of people with jobs – as
opposed to the payroll survey which counts the number of jobs (including multiple job
holders more than once) showed a painful decline of 122K.
Consumer sentiment fell sharply in November to 74.5 from 82.7 as fear of the fiscal cliff
impacted confidence. Historically a decline <70 has predicted imminent recession. This is
not far away, and a failure to agree on meaningful fiscal austerity could push the U.S. into
recession.
Maison Placements Canada Inc.
5
Source: The Economist, October 13 ,2012
Maison Placements Canada Inc.
6
OIL:
Oil inventories remain at very high
levels as peak winter demand is now
here. U.S. inventories are at 97.5 days
of current high demand and are much
above historical levels.
U.S. Crude Oil Stocks
Million barrels
If crude and product levels are not
reduced by strong demand this
winter, then once winter is over, there
may be a glut of inventory in the U.S.
which would lower demand during
the spring period when restocking
should occur.
Overall U.S. product demand is now
18.3Mb/d, down from the winter
peak of 21.8Mb/d seen before the
financial boom period of 2006-2008
when oil prices spiked higher due to
strong emerging market demand
particularly from China. High oil prices
did negatively impact overall demand.
Source: Short-Term Energy Outlook, November 2012
OECD Commercial Oil Stocks
Days of Supply
OECD inventories are also at the high
end of normal demand and with
weakening economies in Europe and
Japan as well as the U.S., the price of
oil could have material downside once
winter peak demand is over.
To forestall a large price decline,
US$70 for WTI or $90 for Brent, OPEC
will have to cut back materially in
production effective March/13. OPEC
meets this week and if no official cut
is announced, then the next down leg
in the price of oil should occur.
Source: Short-Term Energy Outlook, November 2012
Maison Placements Canada Inc.
7
OPEC is now producing over 31Mb/d,
which is adequate to meet high winter
demand. The problem occurs in March
2013 when demand falls historically by
1-1.4Mb/d once winter is over. With
high stocks worldwide currently, a
cutback of 1.5Mb/d is needed if prices
are not to plunge.
OPEC Surplus Crude Oil
Production Capacity
Million barrels per day
The only hope for oil price bulls is that
the risk premium remains high due to
concern about middle east producers.
While there is justified concern about
the situation in Syria and Egypt, these
are not material energy producers and
are definitely not energy exporters. If
there is a lowering of the tensions in
the area or Assad is deposed, then
$10-15 of risk premium in the price of
oil could erode.
In 2013, there will probably be demand
growth of nearly 1.0Mb/d worldwide.
However, in excess of this amount will
be added via new production by nonOPEC members; so OPEC must keep
this in mind in their production quotas
and actual production, if they don’t
want to see prices erode even more
than we are forecasting.
Source: Short-Term Energy Outlook, November 2012
Balance of Supply + Demand OPEC
Source: OPEC Monthly Report, November 2012
Maison Placements Canada Inc.
8
1. Buy during Upcoming Shakeout Before Christmas
S+P Energy Sector bullish Percent
SELL
OVERVALUED
BUY
UNDERVALUED
Source: Stockcharts.com, December 5, 2012
We had a correction in energy stocks in October and November and an oversold condition occurred
which is now being offset by a rally phase. Bottoms in energy markets usually occur when the bullish
percent index reached a low <15%. From the high of 98% in September 2012 , the index has declined
to 55% and the next down leg during the tax loss pressure to come should set up a meaningful bottom
and a great buying opportunity. The chart below tells the story. In April/May 2012, the first phase of
the decline took the 50 day NYSE moving average down to 25% (1) and then a rebound lifted it to 59%
(2) before reaching a meaningful bottom at 12% (3). The recent decline (4) took the level to 19% and
the rebound to 60% (5). We now expect the next leg down to commence shortly (6) and for a bottom
to be reached at a level below 12%. Stock market internals are weakening and a breach of 12,900 for
the Dow Jones Industrial Index (now 13,248) would indicate the start of a significant decline.
NYSE % of Stocks Above 50 Day Moving Average
5
2
1
3
4
6?
Source: Stockcharts.com, December 7, 2012
Maison Placements Canada Inc.
9
WTI Oil Price
TARGET
Source: Stockcharts.com, December 7, 2012
Watch for a breach of US$84.05/b (now $85.84) to signal that OPEC has not made the appropriate
cut in production and that weaker economic conditions worldwide are depressing oil prices. For the
S&P/TSX Energy Index, our forecast remains that we should hit another new low. Our target remains
in the 200 area.
S+P/TSX Capped Energy Index
TARGET
Source: Stockcharts.com, December 7, 2012
Maison Placements Canada Inc.
10
With many energy stocks trading down materially in 2011 and 2012, there are wonderful bargains
out there for investors. With one more decline expected shortly, investors should do their
homework on which names they want in their portfolios. We expect a good recovery in the sector
into Q1/13 and believe a decent upside move warrants stock purchases. Of the names we cover for
Maison, the following are our recommendations:
Table Pounding Buy Levels
During Upcoming Tax loss Capitulation
Dec 11/12 Level
December Potential
Downside Level
SPTEN (S&P TSX Index)
247.86
<$220
$300
WTI ($U.S.)
$85.84
<$80
$105
Delphi Energy (DEE)
$1.12
<$1.10
$2.25
Long Run Explorations
(LRE)
$4.90
<$4.25
$6.00
Questerre Energy (QEC)
$0.69
<$0.65
$1.20
DualEx Energy (DXE)
$0.21
<$0.18
$0.55
Niko Resources (NKO)
$9.23
<$8.50
$20.00
Petromanas Energy (PMI)
$0.19
<$0.17
$0.60
Sea Dragon Energy (SDX)
$0.045
<$0.05
$0.24
Sterling Resources (SCG)
$0.76
<$0.70
$2.00
Index
2013 Upside Target
Domestic Producer Buys
International E+P Buys
We do not see a multi-year bull market for energy stocks after the upcoming shakeout. We may
need to go through another year of two of wild gyrations as the world wide fiscal austerity process
gets governments’ fiscal houses back in order. Once material fiscal progress is made, which may
require another recession, a multi-year bull market may occur. But for now we advise taking a
trading approach and recommend investors take advantage of the next good up leg. BUY in the next
few weeks as tax loss selling pressure subsides.
Maison Placements Canada Inc.
11
2. Maison Universe High Impact Drilling Watch List
Canada:
Location
Ownership
Working
Interest
Leverage
Potential to
Upside
Success
Est. Chance of
Success
Timing
Liquids-rich
Montney
formation
Bigstone, AB
~92%
>$1/share
50%
Ongoing
Montney Liquids
Peace River
Arch, AB
80%
$2/share
50%
Ongoing
Play Area
SAMI Covered
Companies
Target
Montney MultiFrac, Extendedreach Horizontal
Program
Delphi Energy
(DEE)
Normandville/
Girouxville
Long Run
Exploration (LRE)
Maison Placements Canada Inc.
12
South America & Caribbean:
Location
Ownership
Working
Interest
Leverage
Potential to
Upside
Success
Est. Chance
of Success
Timing
Exploration >30Mb
Peru, Maranon
Basin
60%
$2
33%
News Feb/13
Niko Resources
Ltd. (NKO)
Deep Oil Prospect
Tigre on shore
100Mb
Trinidad
Central Range
Block
32.5%/40%
$5+
20%
2013
NCMA-2
Niko Resources
Ltd. (NKO)
Exploration - Gas
Target 5 Tcf +
Liquids
Offshore Trinidad
70%
$40+
30%
2013
Block 4(b)
Niko Resources
Ltd. (NKO)
Exploration – Mainly
gas
Offshore Trinidad
100%
$30+
20%
2013
Guayaguayare
Niko Resources
Ltd. (NKO)
Oil Target 250Mb
Offshore Trinidad
65/80%
$25+
20%
2013
Play Area
SAMI Covered
Companies
Target
Block 95
Bretana-1
Gran Tierra
Energy (GTE)
Central Range
Trinidad
Maison Placements Canada Inc.
13
Europe, India, Indonesia, and the Middle East:
Location
Ownership
Working Interest
Leverage
Potential to
Upside
Success
Est. Chance
of Success
Timing
30 Mb
Tunisia
52.5%
$0.40+
30%
Spud Q1/13
Niko Resources
Ltd. (NKO)
>2.BB on block
Offshore
Indonesia
57.5%
Partner - Hess
$20+/prospect
total >$200
10%
Spud Ajek #1
Dec/12 >200Mb OOIP
West Papua
Niko Resources
Ltd. (NKO)
>1 Tcf + liquids
Offshore
Indonesia
40%
Partner - Stat Oil
$10+
10%
Cikal #1 Q1/13
North Makassar
Niko Resources
Ltd.(NKO)
>400 Mb
Offshore
Indonesia
30%
$10+
10%
Pananda 2013
SE Ganal
Niko Resources
Ltd.(NKO)
>500 Mb
Offshore
Indonesia
100%
$50+
10%
Rajageri 2013
Block 2-3
Petromanas
Energy Inc. (PMI)
>200Mb
Albania
50%
$1+
25%
Shirpag -2 Drilling
News Jan/13
Block A
Petromanas
Energy Inc. (PMI)
>50 Mb
Albania
100%
$0.75+
25%
Juban-1 Drilling
News Jan/13
Ioana, Eugenia,
Pelican Blk
Sterling Resources
(SLG)
Oil and Gas
Offshore Romania
65%
$2+
20%
News Eugenia Well
Dec/12
Upper Bakhtiari
3 wells
WesternZagros
Resources (WZR)
20Mb+
Iraq/Kurdistan
40% in “Contractor
Group” of PSC. ~6% Net
$0.20
33%
Q1/13
Hasira-1
WesternZagros
Resources (WZR)
50 Mb+
Jeribe,
Oligocene
Iraq/Kurdistan
40% in “Contractor
Group” of PSC. ~6% Net
$0.50+
33%
Spud Q2/13
Kurdamir-2
WesternZagros
Resources (WZR)
>500 Mb Gross
Iraq/Kurdistan
40% in “Contractor
Group” of PSC. ~6% Net
$1+
50%
Oligocene Test results
Dec/Jan
Kurdamir-3
WesternZagros
Resources (WZR)
>500 Mb Gross
Iraq/Kurdistan
40% in “Contractor
Group” of PSC. ~6% Net
$1+
50%
Spud late 2012/early 2013
Baran
WesternZagros
Resources (WZR)
>100 Mb
Iraq/Kurdistan
40% in “Contractor
Group” of PSC. ~6% Net
$0.50+
33%
Spud Q3/13
Play Area
SAMI Covered
Companies
Target
Bouhajla North
DualEx Energy
(DXE)
Kofiau
Maison Placements Canada Inc.
14
4.
Top Picks This Month :
Domestic »»
Long Run Exploration: (LRE)
Present Price: $ 4.90
www.longrunexploration.com
12-month Target Price: $6.00
Upside: 22%
Key Purchase Reasons:
1.
2.
3.
4.
Long Run is the result of a merger of Guide Exploration and Westfire Energy. LRE is led by Bill Andrew
and Dale Miller (formerly of Penn West - during its winning years). They plan on growing the company
into a significant medium sized company over the remainder of the decade. Growth this year (via
acquisitions and drilling) is to exit 2012 with 23,000 boe/d of production. A key focus has been on
improving operational efficiencies and they have made significant progress i.e. cutting Montney oil well
drill time (to 8 from 11 days) and changed completion techniques that have boosted well productivity
and lowered costs materially (to $2M/well).
In 2013, the company will spend the majority of its budget of $260M on growing its oil volumes in the
Montney and the Alberta Viking-Redwater plays and will spend 10% of the budget on exploration plays
for the Duvernay, Charlie Lake and Doig. LRE expects to average 25,000 boe/d in 2013.
The stock is very cheap trading at a discount to book value ($6.71/share) and net asset value
($6.09/share). With the sale of the Saskatchewan Viking light oil assets for $180M, the balance sheet is
in excellent shape. Bank debt at year-end 2012 is estimated at $240M versus a bank line of $500M. Cash
flow in 2013 should be $1.70/share.
LRE is one of the cheapest ways we know to get into the exciting Montney fairway and get access to the
Duvernay for free (300K net acres). Our 12-month target is $6.00/share and we see the stock as a table
pounding buy at <$4.25/share.
$6.00
12-Month
Target
BUY <4.20
Table
Pounding
Buy
Source: Stockcharts.com, December 6, 2012
Maison Placements Canada Inc.
15
International »»
Petromanas Energy Inc.: (PMI-V)
Present Price: $ 0.19
12-month Target Price: $0.60
www.petromanas.com
Upside: 216%
Key Purchase Reasons:
Petromanas is focused on exploration in Europe with operations now in Albania and France. The Albanian
business is focused on light oil targets and the French operations (320K acres) are focused on conventional
natural gas targets (which do not need fracking). PMI is led by an experienced exploration focused
management team headed up by Glenn McNamara (formerly President of BG Canada).
1.
2.
3.
Current drilling activity is focused in Albania (6 blocks onshore with 1.4M gross acres). Two wells are
currently drilling – one Shirpag -2 (with partner Shell 50% interest) and one a 100% well, Juban -1. On
the Shirpag -2 well the depth is >6,000 metres and should reach target by the end of December, with
testing in January if successful. The prize could be in excess of 200Mb. The Juban-1 well is a 2,000 metre
test. Cost of the Shirpag well is estimated at $39M of which PMI will cover 50% of the cost in excess of
the first $25M (paid by Shell as part of their farm-in agreement). The cost of the Juban well is estimated
at $9M.
PMI is well financed with $55M of cash on the balance sheet (no debt) at the end of Q3/12 and has an
attractive cost sharing arrangement with Shell.
Our risk adjusted 12-month return for this exploration focused company with news to come on 2 highimpact wells in the next 2 months is $0.60.
$0.60
12-Month
Target
BUY
Source: Stockcharts.com, December 6, 2012
Maison Placements Canada Inc.
16
5.
Recommended Buy List:
Source: Schachter Asset Management Inc., December 7, 2012
Maison Placements Canada Inc.
17
6.
Research Coverage List
Source: Schachter Asset Management Inc., December 7, 2012
Maison Placements Canada Inc.
18
Source: Schachter Asset Management Inc., December 7, 2012
Maison Placements Canada Inc.
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Analyst Disclosure
Rating:
5 – Buy 4 – Accumulate 3 – Hold 2 – Avoid 1 – Sell-Short sell
Argosy Energy
Trading
Symbol
GSY
T
Disclosure
Code
5
Bankers Petroleum
Delphi Energy
BNK
DEE
T
T
1
DualEx Energy Intl.
LongERun Exploration
DXE
LRE
V
T
GTE
NKO
T
T
Petromanas Energy
PMI
V
Questerre Energy
QEC
T
Sea Dragon Energy
Sonde Resources
Sterling Resources
SDX
SOQ
SLG
V
T
V
WesternZagros
WZR
V
Company Name
Gran Tierra Energy
Niko Resources
*Listing
Rating
3
1
5
4
5
4
3
5
5
5
1
4
3
4
3
Analyst Disclosure
Disclosure Key: 1=The Analyst, Associate or member of their household owns the securities of the subject issuer. 2=Maison Placements
Canada Inc. and/or affiliated companies beneficially own more than 1% of any class of common equity of the issuers. 3=<Employee name>
who is an officer or director of Maison Placements Canada Inc. or it's affiliated companies serves as a director or advisory Board Member
of the issuer. 4=Maison Placements Canada Inc. has managed co-managed or participated in an offering of securities by the issuer in the
past 12 months. 5=Maison Placements Canada Inc. has received compensation for investment banking and related services from the issuer
in the past 12 months. 6=The analyst has paid a visit to review the material operations of the issuer within the past 12 months. 7=The
analyst has received payment or reimbursement from the issuer regarding a visit made within the past 12 months. T-Toronto; V-TSX
Venture; NQ-NASDAQ; NY-New York Stock Exchange
Disclosures
Rating Structure
Analysts at Maison Placements Canada Inc. use two main rating structures: a performance rating and a number rating system.
Number Rating: Our number rating system is a range from 1 to 5. (1=Strong Sell; 2=Sell; 3=Hold; 4=Buy; 5=Strong Buy) With 5 considered among
the best performers among its peers and 1 is the worst performing stock lagging its peer group. A 3 would be market perform in line with the TSX
market. NR is no rating given that the company is either in registration or we do not have an opinion.
Analyst’s Certification: As to each company covered in this report, each analyst certifies that the views expressed accurately reflect the analyst’s
personal views about the subject securities or issuers. Each analyst has not, and will not receive, directly or indirectly compensation in exchange for
expressing specific recommendations in this report.
Analyst/Consultant Compensation: The compensation of the analyst/consultant who prepared this research report is based upon in part; the overall
revenues and profitability of Maison Placements Canada Inc. Analysts/consultants are compensated on a salary and bonus system. Some factors
effecting compensation including the productivity and quality of research, support to institutional, investment bankers, net revenues to the equity and
investment banking revenue as well as compensation levels for analysts at competing brokerage dealers.
Analyst Stock Holdings: Equity research analysts and members of their households are permitted to invest in securities covered by them. No Maison
Placements Canada Inc. analyst, or employee is permitted to effect a trade in the security of an issuer whereby there is an outstanding
recommendation for a period of thirty calendar days before and five calendar days after the issuance of the research report.
Dissemination of Research: Maison Placements Canada Inc. disseminates its hard copy research material to their clients using the postage service
and couriers. Samples of our research material are available on our web site. Electronic formats are available upon request.
General Disclosures: This report is approved by Maison Placements Canada Inc. (“Maison”) which is a Canadian investment- dealer and a member
of the Toronto Stock Exchange and regulated by the Investment Industry Regulatory Organization of Canada (IIROC).
The information contained in this report has been compiled by Maison from sources believed to be reliable, but no representation or warranty, express
or implied, is made by Maison, its affiliates or any other person as to its accuracy, completeness or correctness. All estimates, opinions and other
information contained in this report constitute Maison’s judgment as of the date of this report, are subject not change without notice and are provided in
good faith but without legal responsibility or liability.
Maison and its affiliates may have an investment banking or other relationship with the company that is the subject of this report and may trade in any
of the securities mentioned herein either for their own account or the accounts of their customers. Accordingly, Maison or their affiliates may at any
time have a long or short position in any such securities, related securities or in options, futures, or other derivative instruments based thereon.
This report is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities discussed herein in
any jurisdiction where such offer or solicitation would be prohibited. As a result, the securities discussed in this report may not be eligible for sale in
some jurisdictions. This report is not, and under no circumstances should be construed as, a solicitation to act as a securities broker or dealer in any
jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction.
This material is prepared for general circulation to clients and does not have regard to the investment objective, financial situation or particular needs
of any particular person. Investors should obtain advice on their own individual circumstances before making an investment decision. To the fullest
extent permitted by law, neither Maison Placements Canada Inc., its affiliates nor any other person accept any liability whatsoever for any direct or
consequential loss arising from any use of the information contained in this report.
For more information, please visit our website: www.maisonplacements.com