Suncor Energy Inc (SU.TO)

Has been frustrated that the stock has not moved a whole lot, even though its earnings have been doing very well. Have been growing the dividend very, very nicely. The problem is the same with any of the major oil players who are in oil sands operations, that is, until they can get oil out in large amounts. Once there is resolution of all or some of the pipelines being approved, the stock should do very, very well.

Likes this. Good stock. Producing a lot of free cash flow, much more than they are spending in CapX. Historically they have spent almost for the sake of spending and not really worried about cost overruns but now they are talking more about not building to a time schedule but of building to a cost schedule. A lot more capital disciplined. If they can continue to keep showing cost discipline, the stock will keep doing well. Try to buy under the low $30.

In the event of a turn down of Keystone, this is a little more vulnerable than alternatives that you could buy. Essentially all your eggs are in one basket. Also, thinks there are more vulnerable because it is the stock that Americans come up to buy first, it’s big and its liquid and it’s the oil sands play. However, he thinks Keystone is going to get approved so Americans might come up here and start buying energy stocks again.

Largest Canadian oil company. Generating about $3 billion this year in cash flow. Made a strategic shift away from “growth at any price” and are more focused on delivering investor returns to shareholders. Increased the dividend earlier this year. Waiting for some word in September about their plans to go ahead with Fort Hills so the stock might be in limbo a little.

Keystone XL going through could help this company in terms of production out of the oil sands but the system has sort of adjusted itself. Trains are now hauling a significant amount of oil. It will do fine even if Keystone does not go through. An integrated company with refining, gasoline, stores so gives you a broad exposure to the market. He is becoming much more positive on the oil patch and pricing in general.

Dividend is absolutely safe. It is growing and is hugely undervalued. Oil spreads have tightened and make a tail wind. One of his largest energy holdings.

(Top Pick Jul 31/12, Up 7.93%) Still likes it $58.59 model price, 80% upside. Maybe the value will be recognized over night. When the differential is this much it puts pressure on management.

(Top Pick Jul 31/12, Up 23.84%) $33.22, 15.3% upside. 3.3% dividend. Nice upside in terms of model price and you can sleep at night with the balance sheet. 15-30% model upside is normal now.

Has been an extremely disappointing stock. Likes it at current levels. Thinks that the upside is $40. There has been a change in CEO and a real concentration on returning more to the shareholder. You have seen a significant dividend increase and he thinks this will continue. Good capital management.

Good name. Great oil sands company and if you want exposure, this is a great name to own. The issue is, how are they going to get their product out. The whole infrastructure issue is an important one for long-term investors. Definitely the resource is there but it is matter of getting it to market. With the US slowly becoming more energy efficient, we need to find places to get it offshore. Probably not a bad time to start picking at it.

A lot of oil stocks are starting to show some life. However, there is a bit of a ceiling on this one at about $35 so there is a level of resistance coming up. If you own, stay in it as there are probably a couple of bucks in it but watch the $35 level as a possible Sell level.

What is your outlook on the assumption that the XL pipeline is never built? With or without the pipeline, he is quite happy holding this because they are an integrated player. As a refiner they can capture the full pricing of oil when they market it at the end product. Producing 550,000 barrels per day right across Canada. Excellent operations. Doubled the dividend to 2.5%.

Huge oil sands play in Canada. The whole oil sands is very high cost oil. If oil drops it will have a massive impact on their stock price. It is probably the best in the group, however.

(Top Pick July 31’12, Down 0.92%) 80% upside to model price. There is a risk to come back to EBV. It is out of favour and unloved. Pays a dividend now. It is cheap. He has another oil pick for today. He would hang with it.

If they do the cross-Canada line then it will benefit SU-T. Wants to see this more promising before jumping in.