Mike Vinokur Suncor Energy Inc SU-T BUY Oct 28, 2024

Company has recently turned around with new management. Strong capital discipline. Very strong dividend. Excellent assets with very long reserve life of oil assets. Share prices are still cheap - would be a good long term hold. 

Cheap 12x PE. Decent yield of 4%. Likes its vertical integration (exploration, production, retail). Options: sell April $56 for $1.70

Was the ugly stepchild but improved operations dramatically, and that's why it's outperformed CNQ.

Has done a great job of taking market focus off of Base Plant mine depletion down the road. It trades at a slight premium to Cenovus, which SU could buy, but he hopes not.

Pretty deep support around $47, right where it is now. Recent chart shows how it went nowhere for a while, so the break is significant. Energy's been hit dramatically.

He sold off a bunch of energy names, but retained this one. Concerns about global recession is hitting energy names. He's in the camp of too early to think about a recession, and tariffs will look very different 6-12 months from now. If we see there's no recession, things can turn around quickly.

200-day and 200-week MAs still moving higher, a good sign. Right at 200-week MA today, and that can be massive long-term support for most stocks. If you own, don't sell. If wanting to buy, this might be your chance to look at it. Yield is 5%.

He likes the big integrated names, but doesn't own any oil producers now. His team deemed that group as having first-derivative vulnerability to tariffs on volumes and profitability. Premium brand in the space. He's waiting out some of the volatility on the price of oil before getting back in. Nice dividend.

Seeing better pricing on crude products from Western Canada, a game-changer for a stock like this. Balance sheet can withstand shocks. Starting to see realistic moves by Canada to open other export markets for energy. Trading at extremely low valuations, time to start picking away at it for the long term. Yield is 4.61%.

Has made tremendous strides over the last couple of years. BMO's report on insider buying shows highest level in last 5 years, and that speaks volumes. Timing is quite good, with oil showing resistance at $60. Very healthy at under 1x debt to EBITDA.

Look beyond 2025, when tariffs will have been resolved. Energy should bypass a lot of that because of how strategic it is, so we're not going to see a 50% tariff.

It has had 6 consecutive quarters of beating expectations. He prefers CNQ with its strong history of consistent growth and 5% dividend which it has been raising for 25 years.