Canadian Oil Sands (COS.TO) Buy, Sell or Hold

Canadian Oil Sands (COS.TO)

0.00

-0.00 (0.00%)

140 watching

BUY

Cut the distribution by much more than the market expected. This is probably a good time to start buying this one. They have a huge expansion going forward. The dividend will probably go higher as they bring more production on board. This is an interesting entry point.

DON'T BUY

Their asset is 37% interest in Syncrude. Dependent on crude oil prices and their operating costs. Expecting higher operating costs over the next couple of years and will be announcing their Capital Budget Plan in early December.

WEAK BUY

Prefers others. Lack of growth. Has been concern about the dividend being cut but thinks it’s OK for the foreseeable future.

BUY

Presume they will be able to maintain their dividend when they convert. Issues are coming out of the US about the “dirty Canadian” oil but their alternatives are limited.

HOLD

After the sell off in 2008, it went into a horizontal trading range. If it could go past $30, it would be a wonderful breakout. Until that time it is going to be meandering. If it goes below $25, it may be a signal that it wants to come down.

COMMENT

Will have to convert to a corporation by Jan 1st. All oil sands companies have enormous depreciation because capital bases are so huge, which shelters the earnings so doesn’t think they will be greatly impacted by the change. 7.35% yield but prefers growth prospects of CNQ (CNQ-T).

BUY

One of his favourite holdings. Purest play of a producing company in the Athabaska oil sands. In the last few months, Sincrude is going through a huge expansion plan, which involves huge debt, and all partners have to take part. It is thought that COS will cut its distribution in the new year. With the price of oil doing as well as it has, COS has moved off its bottom.

COMMENT

Major player in the oil sands. Hasn't been achieving the kind of free cash flow to pay the big income trust dividends. Not exciting.

BUY

Built stage 3 for Syncrude and therefore increased production by a third. All the hedges they put in place while they were building have run off so is now dependent on what the output is. Had some unscheduled maintenance. Have an advantage with low gas prices, which they use to produce the oil. Decent yield.

DON'T BUY

Considers integrated oils, gas and financials as in a “have not” category. In energy you want to own producers who have upside to production and who are efficient using technology to increase reserves or become more productive. This one is not seeing growth in cash flow that he would like. (See Top Picks.)

DON'T BUY

Disappointing. Market has great expectations. Thought production would be 300 million bpd next year. Potentially a distribution cut with this one.

BUY

Likes oil at these levels and Canada will benefit from a great resource. You aren’t finding any cheap oil any more. Oil moves to $100 within 2 years.

WAIT

There is some concern about US political heat on ‘dirty oil’. There are very few alternatives that are attractive to Americans. Once the political overhang is removed you will probably see all the oil sands companies go up. He owns Suncor

BUY

Dividend is safe. If the price of oil stays at these levels or climbs, you will be rewarded. If not you could be miserable for 6-12 months. The oil sands are here to stay.

COMMENT

Fantastic long-term asset in oil that will be produced for 40, 50, 60 years. Revised guidance down by about 9%. Distribution looks intact. Looking for strength over the next year and maybe a little weakness going into 2012 because of risks to the dividend due to expansion plans.

Showing 226 to 240 of 762 entries

Most Recent Experts

The Weekly Buzzing Stocks by Billy Kawasaki

Stockchase

Jim Cramer - Mad Money

CNBC

John Zechner

J. Zechner & Assoc

The Panic-Proof Portfolio (Stockchase Research)

Stockchase Premium

Keith Richards

ValueTrend Wealth Management

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : [email protected].

Summer Sale

Canadian Oil Sands (COS.TO)