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Shell Canada (SHC.TO)

BUY
Tends to be the most ignored of the seniors. Not well followed on the street. Although he has other preferences, he would have no problem buying it here.
HOLD
A very solid company and very well managed. Has great assets with great profits from the refining side. Prefers Encana (ECA-T).
DON'T BUY
A great business and they keep their production completely unhedged. Own 60% of the Athabaskan oil sands project. A high standard of corporate governance. Any downward fluctuation in oil price could create an enormous risk.
DON'T BUY
Getting very expensive in terms of valuation. His model price is $38.
TOP PICK
Has been a bit of a laggard but is now showing growth in profitability.
BUY
Has lagged some of the others in part because the refinery and gasoline operations are a bigger percentage of its overall mix. Its latest quarterly earnings were a little bit disappointing particularily on the cost side, not making the productivity improvements that the market had hoped for.
BUY ON WEAKNESS
Has some very good properties. The cash flow in the latter part of '05 and into '06 looks very good. Got a little ahead of itself in terms of the multiples and it looks like there is some profit happening now. Look at buying in the $33/34 range. Looks a little expensive compared to its peers.
WEAK BUY
If he was going to own one of the integrateds with oil sands exposure, it would be this one. Prefers the more pure plays.
BUY
Everyone should be in some energy stocks and this one is as good as any. Well run and good assets.
WEAK BUY
One of the few companies that has negative debt, ie, they have more cash than they do debt. Gives you a play on the oil sands. Along with a lot of the other oil sands stocks, it's had a good run.
TOP PICK
A 0.9% yield. This is the one big multi-national company that, because it had to write down its reserves by 20% last year, it is out there aggessively expanding its resource space. Has the oil sands.
TOP PICK
Just recently its profitability started to pick up again. A later cycle petro chemical stock. ROE level is around 23%.
BUY
On a multiple basis has gotten ahead of some of the other big integrateds. Probably having a rest here. Has good long term potential.
HOLD
An extremely high quality, particularily in the oil sands.
WAIT
Like a lot of other senior oils, it has downside because of price risk. Will follow the price of oil in the short term.
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