Suncor Energy Inc (SU.TO)

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.

Over the last 12-18 months he has avoided oil sands companies. One of the issues was the very significant differential they were making on their oil versus West Texas. Recently the differential has been narrowing so it is becoming more profitable for them. Technically, this may have put in a double bottom and may be turning higher. Should energy firm up, this is a company he would take a good hard look at.

Seasonably speaking, this is the time of the year that you want to own oils, from September onwards. This has broken out above the 200 day moving average and the 50 day is just about to break above the 200 day.

At this price, it is definitely a long-term hold but is very dependent on what oil prices do. Has been recently adding to her holdings. Really likes how they handled the integration. They are able to defuse the differentials with some of their refining. Other companies are getting less of a price compared to WTI. Really compelling valuation.

Really cheap. Has visible growth. Had a bit of a rocky road with changes, fires, upgraders, etc. but this is a name that will definitely push much higher, certainly into the mid-$40s a year out.