Suncor Energy Inc (SU.TO)

He would sell this, or even maybe Short it. Trading at ridiculous valuations. If you own this to benefit from a rally in the oil price headline, you are already paying for it. Looking at historical multiples, this is through the roof at 31X forward earnings. If you own Canadian Oil Sands (COS-T), he would Sell that too, because you have already benefited from their bid. The average Canadian portfolio manager has been underweight energy, which has been the right call. However, they need to have some energy exposure, so they buy this company, the largest component of the energy index. As oil recovers, this will be the very 1^st source of funds for portfolio managers in order to buy other oil stocks.

(A Top Pick Dec 17/14. Up 7.6%.) He disposed of his holdings 9 months ago and is currently zero weight in energy.

2/3rds of revenue are from refining. Margins have been massive since oil prices came down.

(Top Pick Jan 6/15, Up 13.48%) The premium oil sands company. They managed the company well and will be one of the survivors. You can hold it for the long term. The second half of 2016 is where he sees more upside to the oil price.

Suncor (SU-T) or Canadian Natural Resources (CNQ-T)? These are the 2 senior Canadian producers and are both great companies. They both look like they had a small bottom and are trying to move up. They both attract international money. Either one of these will work.

Canadian National Resources (CNQ-T) or Suncor (SU-T)? These are probably the top 2 he would be going into, but separating them out he would probably be a little more inclined to go to Suncor, just on valuation and growth potential. They are both quality growth producers and you should have both of them in your portfolio.

It might get Canadian Oil Sands (COS-T), but if not somebody else gets it, which means their 12% in Syncrude is worth more. The big thing is that it is an integrated play. You have 1500 Petro Canada gas stations and 5 refineries. Has a balance sheet to enable it to do things. It has Fort Hills coming on in 2017, which is going to be a big boost in production. Even if oil prices stay at present low levels, this is the one that you probably want to be with.

(Top Pick Oct 8/14, Up 0.14%) This is the best house in a bad neighbourhood. He would have no hesitation to add to it at these levels. Diversification is the key here with the upstream and oil sands exposure. He is not concerned whether the COS-T bid is successful or not.

This has done an outstanding job. Clearly with their bid for Canadian Oil Sands (COS-T), they see themselves as becoming increasingly dominant in the oil sands production. It is cheaper to buy than to build. The dividend is fine. Oil prices are probably going to go higher from here, it is just a matter of what are the intermediate price points that it gets to in the next year or so. If you have a 2-3 year time horizon, this is an ideal time to be in this name.

This is one of the investable names in the sector. A good balance sheet, low debt for now. But he would not buy it now. It is trading more expensive than its 5 year average.

You are hoping oil does not fall below $40 or $30. It has been held by a lot of value managers. One thing he likes about SU-T is that they managed their hedges reasonably well, the quality of the assets has been very diversified and in the weaker commodity environment. They show a good earnings momentum score. You should own it in the low $30s.

Has been a relative star in the Canadian market because of the balance sheet and the dividend, which is safe and was increased recently. The refining and marketing divisions kept their profitability up. Production will be ramping up. If you want energy exposure it is a safe one to own.

Versus the other integrateds, this is been the “go to” play. Down 20% through this whole correction. Excellent balance sheet. Has gone through a growth phase and now going into free cash flow generation, which is quite timely given not having to spend significant amounts of capital outside of Fort Hills. Valuation is starting to get stretched. If you feel we have probably seen the worse in oil prices, and are starting to reposition yourself in some others, there are better growth prospects.

We are getting a lot closer in this industry, but he is cautious with this one now. It is expensive on a PE basis. They are having problems with some of their operations and there is negative publicity about the oil sands.

Really likes this company, largely because it is integrated and well diversified through the energy industry. When some parts are not working, others are working well. 3.2% dividend yield.