Suncor Energy Inc (SU.TO)

It would be a good company to own and it is the first time in three years when he has said to buy an oil producer. Oil recently broke out.

Likes the Canadian energy sector, and Suncor is a leader. A low-cost producer with good future growth. Well-positioned. This sector is under-owned. Oil prices will perform a little better than many expect. Bullish on Canadian oil.

CNQ-T versus SU-T – They both rank well in his model. In a rising interest rate world, energy stocks do well. CNQ ranks slightly higher as share earnings will grow 100% in 2018 with a 16 times P/E. He does not own either stock.

In a rising interest rate world, energy stocks do well. CNQ ranks slightly higher as share earnings will grow 100% in 2018 with a 16 times P/E. He does not own either stock. (Analysts’ price target is $51.50 )

Would you purchase CNQ-T or SU-T? He thinks both are great companies, but they have a high beta to an oil price decline. Suncor would be a good buy in the mid-$30s. CNQ is producing almost 1 million barrels a day and are a great success. (Analysts’ price target is $51)

Not a fan of Canadian energy, though Suncor is one of the best names here and probably a buy here. Prefers playing energy through ZEO or XEG ETFs. ETFs are used for renting names, particularly cyclical stocks, and energy is highly cyclical.

VET-T vs. SU-T. He would more toward SU-T because it is longer term and you get a higher discount. His money has gone toward the drillers recently.

CNQ-T vs SU-T. Both companies suffer from wider heavy oil differentials. He really likes CNQ over Suncor because it is gushing with free cash flow (he estimates $2.3 billion this year). CNQ Horizon expansion added 70,000 bpd of production. He owns CNQ bonds and equity. (Analysts’ price target for CNQ-T is $52 )

In spite of lower energy prices, he is still modelling 4% Cash Flow per Share Growth and 8% Production Growth 2017-2019. This company has an awesome balance sheet. However, it is a little expensive, trading at 8.2% 2019 estimates, versus 7.1% the integrated peer average. If you like oil, this is a name you can buy on a pullback.

Not a big fan of commodity and cyclical spaces for energy, oil, gold, metals, minerals. The problem with most of these names, and Suncor specifically, is that it gives and takes away over and over again. He would prefer the ZEL-T ETF.

When it gets to book value just under $28 at present, it is a buy, historically. In 2017 the price of oil was up 7% and this one did very well. Nat gas went down 20%. Mother nature could close their value gap very quickly with a cold winter.

Has this as a core holding. Their margins have stayed pretty healthy on the refined products side. He likes this because it gives you more of a safe, less volatile way to play energy. Pays a great dividend. They should put up anywhere from 5% to 10% growth every year, depending on crude oil prices.

If she were adding from the sector, this would be one of the ones she would be looking at. In the near term, you just don't have to be here given the pricing dynamics in Western Canada. This company is a very good oil sands operator.

ZWB-T vs. SU-T, which to sell. There is nothing wrong with Canadian banks long term. ZWB-T is his preferred way to play it. He got out of it when it retested last year’s resistance. He thinks we will test last year’s lows and then he would be a buyer. SU-T is a bellwether of the market but will underperform a lot of global oil plays. He would trim exposure and then look to buy it 10-15% lower. He would trim both here and look to buy them back.

Doesn’t own. Owns Canadian Natural Resources (CNQ-T). The two are comparable, two bellwethers in Canada. Suncor is more into refining with production assets that are a little bit higher quality. They’ve been with CNQ-T historically and continues to hold.