Suncor Energy Inc (SU.TO)

Suncor (SU-T) or Canadian Natural Resources (CNQ-T) for the growth? These are both excellent choices. Thinks CNQ is slightly better. This one throws off huge free cash flow growth and you are going to have nice dividend growth as a result. A quality name and a good balance sheet. (See Top Picks.)

(A Top Pick Oct 15/13. Up 18.72%.) His model price is $79, an upside of 81%. He is willing to be patient and wait for the value to be created.

Switch to another oil such as Canadian Natural Resources (CNQ-T)? These are 2 really good companies. Both are very well run and if you wanted to own 2 large cap names, these would be the 2 you want to own. Doesn’t think the trade would be worth it because of the possible tax implications and transaction costs.

It is more of a gas play. You are playing the winter weather story. He would not necessarily be selling although he reduced his position recently. It is stable and generates a lot of cash flows. He would not throw more money at it, however.

Likes it. Even though he thinks oil prices are vulnerable, SU-T looks attractive in the long term. You can expect very good dividend growth going forward.

Looking for increasing free cash flow generation with their good production growth. Also, thinks the dividend will increase over time. This is a great story to own. An integrated, so they have upstream production as well as the downstream integrated. In the event of volatile oil prices, they make money on the downstream.

This has been his favourite for a long time. A premier oil sand company in Canada. Well respected management which focuses on returning cash to shareholders either through dividends or buybacks. That will continue. Expect they will continue to raise their dividends. Over the long term they will create value.

Has sold all of his energy holdings. Energy has 2 seasons. The 1^st run ends in May followed by a 2^nd run starting in late July. His holdings ran right through the weak period and he started to reduce in early July. He is now currently looking as to when to get back into the energy sector. Thinks there will be an opportunity between now and late September.

(A Top Pick Sept 4/13. Up 25.39%.) Lately stocks have held up quite a bit better than the commodity price of oil. Selling for a reasonable multiple at 1.5X BV. Trading at about 11X next year’s earnings. 2.5% dividend yield. A well diversified play on the energy industry.

Refiners are making a huge margin. SU-T are growing their oil sands production.

They broke a support level and established a downward trend. They have underperformed the market and are below the 20 day moving average. Three technicals against you. Fundamentals suggest a bit of caution here.

This is a benchmark name. Over time he noticed that energy is pretty strong in Canada and appeals to Canadian and international investors. He thinks it should be a core holding. Ultimately has good leverage to oil prices. But if oil is below $90 it will not do well.

(A Top Pick Aug 7/13. Up 27.99%.) This had a negative transit in one of his EBV lines, so he would be cautious on ih. Hopefully the EBV +2 level holds. It could fall back to EBV +1 at $36.50. Energy, certainly in the last 6 weeks, has been a tough sector to be in. He shows this could have an 87% upside. Yielding 2.67%.

This is a bit boring at the present time. The oil sands has become a major part of their production. Have a good following in the US. Not much exciting about the stock at the present time. Very solid, and on a long-term basis it is a fine investment. Don’t expect too much performance out of it in the intermediate term. Q2 was slightly below expectations were the others surprised with better growth.

Really likes the stock. Have made some very good decisions on exiting areas where they don’t get the rates of return that they want. They have the more important aspects of their business and they really do think about this when they are buying or exiting assets. This is a great story at these levels. Expects there is more upside and it is not expensive. Decent dividend. This is something that you can own for many, many years.