Suncor Energy Inc (SU.TO)

We are getting half the world price for oil. There is a lot of activity under way. Be patient for another 12 months.

The dominant oil company in Canada fully integrated. Doing fine in refining spreads. They are dominant in oil sands and retail distribution. Looking forward, under 5 times cash flow, under 10 times earnings, you could see pretty good appreciation.

Well-run company. Current disenchantment is over the Voyager upgrader and that looks like it may well be scrapped along with a fair bit of change. This is on his potential Buy list

There is a big discount on oil and operational costs are high. Because of this, a lot of investors would prefer to own the infrastructure companies rather than the producers. Trading below the 200 day moving average. We are in a strong market and the energy patch does not appear to be the place to focus.

(Market Call Minute) Better returns in other players.

If Suncor announced sale of interest in the Voyager project to Total, it might have a slight short term impact but the price of oil would be a bigger factor. He is a buyer below $30 and a seller at $34

One of the few names in the energy space that he is relatively constructive on. Like management’s tone recently. Will likely increase their dividends. Willing to cut off some of their big projects that they’ve done, so Cap X spending is going to come down. Generates an incredible amount of free cash flow. Trading at very big discounts to their NAV. Right time to accumulate for long term investors.

(A Top Pick March 1/12. Down 10.44%.) Continues to like the fundamentals. Shorter-term they are facing the impact of widening oil differentials in Alberta.

(A Top Pick Feb 13/12. Down 6.95%.) Sold his holdings in November because of concerns on the US fiscal cliff debate. Starting to wade back into this little bit. Really cheap.

Valuation looks attractive. Going to have cash flow per share of about $6 a share as long as oil stays in the $90 range. Going to grow its production. Cutting the cord on some high cost production. 1.7% yield. Hoping there will be an increase in dividends.

He trades for clients. Likes below $30 and sells above mid $30s. Does not see that changing. Doesn’t think keystone gets done until 2015.

(Top Pick Jul 6/12, Up 10.95% Total Return)

Being in Canada, he only bothers with those that can grow their production. Can’t see the government allowing it to being a takeover target. He would be a little bit cautious with this one. Still owns a little bit.

(A Top Pick Feb 9/12. Down 6.57%.) There is far too much value to give up on this one. He has a model price of almost $60, and 86% upside.

Looks like a lot of energy stocks. Nice run in latter 2012 and now we have a lid. Finding support in the $31 area.