Suncor Energy Inc (SU.TO)

These big material and energy names you need to be very careful of. You watch the cycle and trade in and out of them. At this point, he feels this company still has good tailwinds behind it right now.

Chart shows a breakout earlier this year and it ran up. However, with crude running into difficulty, this could be a problem. The lower fruit has been picked and he would back away from this group.

He sees growing cash flow. Likes what the new management is doing of returning capital to shareholders and following the Exxon plan. Could be a much higher stock than it is today.

Likes this long term. Good production profile. Also, likes its refining and marketing. Raised its dividend and will probably do it again next quarter. There is lots of room for the dividend to go up. Had some production difficulties last quarter, in both upstream and refining sides. More importantly the price of oil has gone down to about $97, which hurt energy stocks in general. Unlike a lot of its competitors, 100% of its production is sold at full WTI price.

Likes this a lot. There is a lot of upside potential. His Fair Market Value is quite high. Has been recommending the stock for some time. Probably has another 30%-40% to go before he would consider it to be expensive.

Behaving extremely well. The thesis is that the bottleneck in transportation from Canada to US is starting to break up a little bit. A great balanced portfolio to own. A great core holding to own. You will see $50 again in your lifetime.

Probably needs a minor correction after a huge run. It is well above its 40 week moving average. It could correct or just stop moving.

Has exceptionally good assets, great management team and increased dividends. You also have the advantage of refining capacity. It’s not just a matter of being able to extract heavy oil out of the ground, but you have to go through the processes of refining it. This company probably has some of the best operations in the country.

2^nd quarter numbers were not quite as strong as they could be. She bought more of this last week. Feels that there is a big free cash flow wall coming. Likes it at this price.

This is a much better company coming out of the recession. Likes what management is doing. They follow the Exxon model of returning capital to shareholders. Going to generate stable, stable returns going forward, as long as oil prices stay high.

Into a free cash flow distribution phase which will give them the luxury of having long reserve life mines and SAGD projects, producing a fair amount of free cash flow. The share buy back, and the dividends in the long term are what are going to help shareholders on their rate of returns.

He is not a big investor in oil sands. There are long lead times on projects. Prefers CNQ-T.

In the last 4 months, he has built a pretty significant weight in the heavy oil companies in Western Canada. The bottleneck in getting the bitumen and oil to market is starting to de-bottleneck a little. We produce about 4 million barrels a day, and by the end of this year will be moving about 800,000 barrels a day to the Gulf of Mexico. So the differential between Western Canadian heavy oil and WTI is narrowing, which is good for companies like this.

Stock has moved up, and they are doing a lot of the right things, but if you ever get a bottleneck problem on heavy oil, you could be into a bit of trouble. Prefers Canadian Natural Resources (CNQ-T) which has more international exposure.

Have done a good job of tightening focus over the last couple of years. Often uses this stock instead of being in cash. He does not feel like he needs to own Suncor at these prices, however.