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        Hi, welcome to a new
trading week.
        I'm Ted Dixon with the
        INK morning report preview
        for July 19th,
        "Oil patch veteran buys
the dip."
        Cardinal Energy director
John Brussa has
        ridden the ups and
        downs of the oil patch
before.
        The Calgary lawyer has
been an insider of
        more than a dozen
        oil patch companies over
the years,
        and today he makes our
screens as
        he buys the pullback
        in Cardinal Energy stock.
        The stock has come off
        its 52-week high of $3.87
set in
        June following the news
        that Cardinal was buying
        privately-held Venturion
Oil in
        a stock and cash deal.
        With the acquisition now
closed,
        Cardinal expects Q4
production to average
        21,500 barrels of oil
equivalent per day,
        with most of those
liquids.
        His buying puts Cardinal
on the list of
        companies in the sector
        with recent key insider
buying.
        We are keeping a close eye
on
        insider activity in the
oil patch now to
        see what kind of appetite
        exists for insiders to buy
the pullback.
        A lack of buying would
        signal that insiders are
        worried that the bull
market in
        energy stocks could be
near its end.
        However, insider buying
remains
        consistent with bullish
insider sentiment.
        Bull markets often have
corrections,
        and we appear to be
        in one now with oil patch
stocks.
        Importantly, this healthy
level
        of insider buying
        suggests that insiders see
        sustainable oil and gas
prices ahead,
        ones that are not too hot
and not too cold.
        In the past, when
        oil prices have jumped too
high,
        they damaged consumer
confidence
        which choked off consumer
spending,
        causing a recession and,
        ultimately, a plunge in
oil prices.
        If oil prices were to move
much higher,
        we would expect to see
        a lot more insider
selling,
        sending us a clear signal
        to get out of the sector.
        That is not the case right
now.
        At this point, Cardinal
        has a sunny outlook, and,
        judging by the number of
        oil & gas companies
        that also have sunny
outlooks,
        bright days still lie
        ahead for the oil patch.
        This is not a
recommendation
        to buy or sell securities,
        and I am not a licensed
financial advisor.
        So, please do your own due
diligence.
        For the full report,
        please visit
inkresearch.com or
        canadianinsider.com where
you can get
        it via the Canadian
Insider Ultra Club.
        If you are new to
following the insiders,
        check out our FAQ on
inkresearch.com.
        Well, thanks for stopping
by and
        click on the notify button
under this video
        on INK Ultra Money to be
notified when
        we have our next preview
available.