Suncor Energy Inc (SU.TO)

Their fortunes are tied to oil. Largely at his target trading at a premium compared to its integrated peers. What is good is that they beat by 3% last quarter. Balance sheet is great. Dividend is very safe with a payout ratio of 53%. Everything is good with this name except the price. At this level he would sell a call. If it pulls back, he would accumulate it by writing a put.

You are sitting in some euphoria. He would wait for a pull back to get in. You might want to buy it then. This is a great success story.

It's one of the best integrated oil ompanies. Great balance sheet. Always improving their cost structure. Not an expensive stock. He used to own it. Well-run. Great company. As for oil, it's stuck between $60-80, and oil dynamics are really hard to predict, especially with shale oil coming on as the price falls. In Canada, we have a huge differential because we can't get oil out without more pipelines.

(A Top Pick April 28/17 Up 25%) He still likes holding and is his largest exposure to the energy sector. They are the benchmark for the Canadian energy industry being diversified and integrated. This remains a core holding. This will benefit if the recent pipeline decision will bring favour back to the sector. Yield 3%.

Don't add to a losing position or sell it here given the recent drop in oil. He likes this name.

It will act differently from the oil producers, because they operate refineries. If you expect WTI to reach $80, Suncor is not the best good bet, though it's a safe bet due to their refining and marketing operations. He expects SU to hit $55 in a year. But if you want serious upside, buy something else.

Reasonably positive on the oils. Oil is going to stay in the $60 to $70 range. His concern is oil sands vs shale south of the border. Expensive sector of the market. Until the pipeline is not sorted out there is a big question mark. Good company. You get some of the downstream advantages.

He avoided energy for years until last February. In Canada, his largest position has been in the oil sands, because these companies have invested in past years and are now looking profitable. Suncor has low decline rates in its production compares to its peers. With oil at $60-70, this will do well and attract global buyers. But remember: oil is cyclical and addition supply can come on from other sources. Overall, he likes Suncor.

When to take profits? Take profits when a stock makes up a dispoportionate part of your portfolio. This is a core holding of his. It's the best oil sands stock in Canada. It's has a fine integration operation, meaning they own refineries. They also boast dividend growth and a share buyback program. This stock can go higher.

Excellent company. They had own it for a couple of years. The entire energy space is dramatically underpriced.

If oil goes to 80 dollars a barrel would the stock go to 60 dollars? That is a big move. It is not there. He wouldn’t rule it out. He continues to buy on these levels. (Analysts’ price target is $55)

A stable oil stock. It's a cash-flow machine He prefers CNQ, but there's nothing wrong with Suncor. He predicts an oil pullback to the $50s at some point, and Canadian differentials will widen again. Buy this on a dip. They continue to grow their dividend.

This is the star of the industry. They push a million barrels a day. The company has generated a lot of excess cash flow and have been using it to buy back stock. They will generate $10 billion cash flow this year and will spend $5 to 5.5 billion. They’ve increased the dividend to $1.44 and are doing buybacks. They are bringing in over 4 billion discretionary cash this year. They’ve repaired their balance sheet. Debt is down to $13.3 billion at the end of December compared to $16.1 the year before. Their equity base is $45 billion. The one problem for them is their operating cost. They have a large stake in Syncrude, and its costs are about $20 higher per barrel than Suncor’s own costs.

The narrowing in heavy oil differentials is helping this. This is a great long term stable stock to hold. He expects the dividend could rise over the next few years. This is trading over 7 times cash flow, so it is a bit expensive. He might prefer CNQ-T as it trades at lower multiples.

SU-T vs. EMA-T. EMA-T has a higher dividend. He thinks there is more capital appreciation potential with SU-T, however.