Suncor Energy Inc (SU.TO)

The integrateds have held up better than the producers, though they have struggled lately. Canada has a huge problem with WCS with its heavy price discount. SU is very low- cost, but you still have to wait well into next year before the lack of capacity (Canadian pipelines) is fixed). This stock is flat, so you're essentially earning only the dividend.

He is not positive on the energy complex because it tends not to do well until mid-December. This is the stock he would recommend in this space. Support is about $40. He thinks it will start to rise in mid-December.

OIl and gas has been under a cloud. SU is now very inexpensive and an excellent buying opportunity. It has some of the best assets in Canada, especially downstream, and is the most profitable refiner. Margins are improving and they are buying back stock. Dividends should improve in the next few years. (3.2% dividend, Analysts price target: $61.63)

He doesn’t have any exposure to the Canadian producers as they are getting 45-50 dollars less for each barrel of oil compared to international prices. It eventually will do very well.

Their refining business has been strong this year and have benefitted from this. One of the great Canadian energy names. It is not trading at an expensive valuation. He prefers CNQ right now. Suncor is a great long term business. Would definitely benefit if the Canadian crude spread tightened up.

This is a core senior holding for them. Operationally, they are second to none and Fort Hills is progressing well. Horizon is operating and creating free cash flow. He loves getting the dividend and sees the assets providing a long term sustainable income stream.