Stockchase Opinions

Martin Hubbes, CFA Suncor Energy Inc SU-T TOP PICK Feb 15, 2011

Good long-life assets and good projects. Likes management.
$41.870

Stock price when the opinion was issued

integrated oils
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BUY

The ZEO ETF recently broke out to new highs. In the group, he likes CNQ, IMO and SU.

DON'T BUY
SU vs. CNQ

He doesn't generally participate in the E&P space, as it's hard to make decisions based on the underlying commodity price. Bigger picture, still huge demand for Canadian oil and gas on world markets. EVs won't take over anytime soon.

SU had been an underperformer and a laggard. Management changes have resulted in turning things around and improving operations. So now, he'd prefer this to CNQ.

HOLD

Surprised it didn't perform better after a sterling quarter. Could be a prime beneficiary if (emphasis here) Trump can revitalize Keystone.

Unspecified

It is one of the big companies which he owns along with CNQ. It has done a lot with costs and will do well if energy does well.

TOP PICK

They had lots of debt and operational problems, so were in the penalty box. But this integrated has huge long-life reserves. Cash flow is up and pays over 4% dividend and boasts a 100% shareholder return. Excellent balance sheet. Energy is in seasonal strength now.

(Analysts’ price target is $62.29)
BUY

Likes energy. A name he likes based on the sideways trading chart.

PAST TOP PICK
(A Top Pick May 15/19, Up 53%)

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. 

TOP PICK

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

(Analysts’ price target is $63.92)
COMMENT

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

COMMENT

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.