Suncor Energy Inc (SU.TO)

A terrific name long term. Great cash flow generator with shareholder-friendly policies.

Have done a very good job of sorting all the Petrocan issues out. You are seeing the cost structure coming down. The integrated really helps you in this environment, especially with all the issues of the oil sands.

Take away capacity out of the oil sands is no longer just dependent on one project, as you now have crude by rail. With their free cash flow generation over the next 5 years, they can afford to pay a 4% dividend so they will probably increase their dividend.

(Market Call Minute.) Loves this one. Cheap stock and lots of Free cash flow.

Bought when he heard Warren Buffet bought it. It will bring a lot of attention back to the sector. Contemplated using it as a top pick but you can’t necessarily just hold it for the next year. It has to be managed. It is his most recent purchase. Use a stop to get out.

On the Petrocan acquisition years ago, they were in a position where operating costs went from $34 a barrel to about $45 a barrel. You now have a company that is performing very well and have got discipline on the capital spending side. Throwing off tons of free cash flow. Yield of 2.2%.

A core name in Canada. Have fabulous assets. Did 500,000 barrels in the 2^nd quarter. The company’s BV was $26.78 at the end of Q2. Sometimes the stock goes below $30, which would be a fabulous buy.

Has had a big move. Could be late to get in. Almost at the old top. Look at the double bottom. The uptrend is still intact, but there could be resistance around $19. If we break through that it could move higher.

(Top Pick Aug 30/12, Up 16.82%) Still thinks it is a very good name. You are fine to continue to hold it. Soup to nuts company.

Has performed very well, especially subsequent to the announcement that Warren Buffet bought into this company. He favours Cenovus (CVE-T) and Canadian Natural Resources (CNQ-T) because of the relative outperformance. He likes the name, he just like some other names better.

(Market Call Minute) Looking at efficiencies, free cash flow and higher dividends.

In 2016-2017 it is predicted that the US will be the world’s largest oil producer. This is a real game changer. The US hates our oil sands oil. When it comes to oil, we need to stay clear of oil sands. When it comes to oil, he wants to buy nothing but light oil and he wants a big dividend. So he will look at something like Crescent Point (CPG-T) or Vermilion (VET-T).

(A Top Pick April 30/12. Up 5.92%.) He thinks this will pass its old high of $34-$35. Still a Buy.

(A Top Pick July 31/12. Up 11.09%.) He sees 75% upside to his model price. The integrated oils are great value. Excellent yield of 2.4%.

Generating the most free cash flow of any larger oil company. Totally undervalued. Doesn’t know why the market hates it. Trading at a very low cash flow multiple.