Suncor Energy Inc (SU.TO)

If this had a bigger dividend, he’d be much happier buying it for his more conservative clients. From a volatility spectrum, it is perfect for older people that require more cash flow and capital safety.

(Market Call Minute) Peck further down the food chain with smaller cap and higher growth.

Doesn’t hold this in large amounts. Perfectly good company. Integrated. Has certainly acted reasonably well over the last little while. Has been sort of stuck in the current range as almost all the integrateds have. Thinks it will probably break out. If we get the kind of growth rates they are talking about in the US and Canada, consumption of those products will go up. Good, long-term investment.

Energy stocks here are at the higher end of the range so he would tend to want to take some money off the table. But years down the road it could be 20% higher.

Energy stocks could be the surprise right now. Developed an uptrend line and we are waiting for a break out. If we get one it will be a significant event to bring it to $43.

(Market Call Minute.) One of the better oil sands companies. Sees some significant dividend increases in February.

Recently taken a different tack under the new CEO, to be returning more capital to shareholders. Still a pretty small dividend yield, but increasing rapidly. Relative to Cenovus (CVE-T), they have a bit higher cost of production. Upgrading facilities in terms of upgrading mine bitumen to synthetic crude oil are expensive and prone to breakdown. Definitely a stable company though, and you won’t go far wrong owning this.

Stock closed yesterday at $37.25 and he has a model price of $71.26, a 91% upside. He doesn’t know what gets the stock going. Yield of about 2%. This should be a core position in a Canadian portfolio.

(A Top Pick Jan 9/13. Up 14.41%.) Sold his holdings when he felt the easy money had been made. It might reach $40 at some point this year, giving you another 10%.

All the environmentalists hate the oil sands but the product is going to get produced. Feels it will get moved by pipeline as everyone probably sees the folly of moving this stuff by rail. There is at least 30 years of asset reserves at current output. Trading at about 5.5X cash flow. Downstream assets protect you when oil prices go down. Cost of production keeps getting lower and lower every year.

A beneficiary of the tremendous difference between many other types of integrated companies. Have about 600,000 barrels a day of crude oil production and 400,000 barrels a day of refining capacity so there is a natural hedge. Has configured itself with the CEO to just go ahead and focus carefully on capital efficiencies in the types of projects that produce the longest term rates return. Throws out a tremendous amount of free cash flow, which allows them a huge amount of flexibility.

Frustrating time to own it or any major oils in Canada, and oil sands exposure. SU has a nice refining and market presence. They have also been doing well on the East Coast. Discount on oil sands oil should narrow going forward.

This is oil sands and there is a huge backlash globally on this. There are other Canadian companies that pay bigger yields and are dealing with light oil, which he would prefer.

This is his primary holding in the oil/gas area. Expects there will be significant capital appreciation. It is such a well diversified company with the oil sands, upstream and downstream operations and their retail operations.

On a macro picture, there is still a valuation mismatch between our shares and US shares. Feels that is just beginning to close and this company will benefit from that. On top of that there is a global economic growth and she thinks 2014 gets better, which will pull oil along. As well, Warren Buffett entered into the stock this summer, which gives it a halo effect.