Dennis da SilvaPetro-CanadaPCA.TODON'T BUYFeb 25, 2008
Classic value trap to some degree. Trades at a discount to its peer group. Under performed. Operates in North America and the North Sea. Hasn't delivered on per-share growth. Fort Hills is a mega project at $15 billion which he expects them to sanction at the end of this year. It will take up a lot of their resources and capital and set them up for growth down the road. Really having trouble seeing growth in the next 12 to 18 months.
(A Top Pick Oct 16/08. Up 107%.) (Now Suncor (SU-T)) A dominant player. Well diversified across gas, oil, oil sands, upstream, downstream. Will be the bellwether stock in the oil/gas industry.
Merger with Suncor (SU-T) makes all the sense in the world. Very good combination. You get the oil sands along with a cash flow that will come from their more conventional assets.
Merger with Suncor (SU-T) is pretty much a done deal. Doesn't think this will go any higher so he would sell and pick up more Suncor, which is in the penalty box right now.
Merging with Suncor (SU-T). The reason to buy either is that they have a production profile that could grow dramatically. If you are positive on energy over the next little while, it makes a ton of sense to have a senior company like this.
Merging with Suncor (SU-T) and would prefer to buy this rather than Suncor as the deal risk is minimal. Thinks government and shareholders will let the deal go through. A cheaper way to go.