ESSENTIAL ENERGY SERVICES TRUST (ESN.UN/TSX).

The manager started buying this name in recent weeks and feels it is too cheap to ignore under $1 per share. He thinks it has a lot of potential catalysts that could move the stock higher.

"This could be an easy takeover for another player in the industry," says Mr. Brockelsby.

He notes that Essential has a market cap of roughly $50-million, but owns 50 rigs that cost $2-million each to build.

"The lesson here really is because of the financial crisis that we had over the past two years, the smaller cap stocks have been particularly ignored," the manager says.

"If the drilling cycle starts to turn here, this is a company that has huge operating leverage, no financial risk and is extremely cheap. It's probably a pretty easy double from its current stock price."