Suncor Energy Inc (SU.TO)

(Top Pick Oct 28/11, Up 21.72%) Added to it recently. Refining margins did help a lot in the past quarter. Now focused on profitable growth rather than growth straight up. Great lever play on oil and their operations are good.

(A Top Pick Nov 14/11. Up 8.84%.) Would have thought the stock would have done a lot better a lot earlier. A breakout on oil prices would help. New CEO has put more emphasis on returns and profitable growth. Have a lot of free cash flow.

There is seasonality in the oil/gas business and patterns are fairly well known by investors and is sort of implicitly built into the prices. He doesn’t own a lot of oil/gas stocks. Trying to predict the oil price over the short-term is very difficult. Looks like the supply has actually been more than was thought this year, in the US in particular. There is this geopolitical price because of potential conflicts in the Middle East. This is one of the blue chip names in the sector and this one would be a pretty good bet if you like this sector.

Integrated. Has a lot of clout in the oil sands and has been performing quite well. Integrated aspect of it has been positive. Good solid company. Doesn’t see it as a real growth situation or income situation so he has gone elsewhere for growth in oils.

Has had a nice little run up since June. Seasonably we are supposed to have finished with energy stock. If you own, he would put a Stop in at around $32. Has a pretty good upside of around $49. Prefers Husky Energy (HSE-T) which has a big, fat juicier yield but he doesn’t think you can go wrong. (See Top Picks.)

Suncor (SU-T) versus Canadian Natural Resources (CNQ-T)? This one is oil sands and oily focused. The gas production they do have goes into injection to help get out heavy oil. Lately this one has been acting better than CNQ. It is more owned in the US and is one that they go to first. At the start of “risk on” this one will do better. Also, we’ve had the differential narrow back again from Canadian oil to WTI making this company a beneficiary this quarter. Prefers this company. A great price will be somewhere around $30 but somewhere in or around there would be fine.

(Top Pick Oct 14/11, Up 6.93% total return). Sold out. Would not buy right now.

(Top Pick May 17/12. Up 19.61%.) At the time, he thought this company had to do some catching up on the oil prices. Fully integrated so it is able to capture some of the higher prices.

New CEO is focused on not only growth, but growth at a reasonable price. Inexpensive. Recently upped the dividend. This should be the mainstay of many people’s portfolios.

(A Top Pick Oct 11/11. Up 17.16%.)

Suncor (SU-T) or Canadian Natural Resources (CNQ-T)? Owns both but if he had to choose he would probably go with CNQ.

(A Top Pick Sept 20/11. Up 12.7%.) Extremely well run. Should continue to do well.

Has had a reasonable move of late off their lows. There is some support currently in the stock now with the company announcing a Normal Course Issuer Bid so there will be some buying support there. New CEO is taking a hard look at a lot of future projects. With his view of a possible economic slowdown, oil could subside and could see it easily trading in the low to mid $20’s as it did not that long ago.

This is his 2^nd favourite stock in this sector. The fact that it is oil sands it was hit earlier this year. Has recovered somewhat. Good price.

Buying back shares. Potential of a dividend increase is very strong. 1.6% dividend yield. If you believe in $95 oil, not only can they buy back their shares as well as pay a higher dividend but they can also pay down debt.