TSE:SU

Suncor Energy Inc (SU.TO)

96.57
-0.44 (0.45%)
as of Sep 25, 2026, 8:00:00 pm Market Open.
1173 watching
0
HOLD
We are in the shoulder season meaning there is not a lot of consumption until the summer driving and air conditioning seasons in the US. Oil companies don't do a lot until later in the summer. He plays energy by buying yield stocks such as Arc Energy (AET.UN-T), Enerplus (ERF.UN-T) or Crescent Point (CPG-T). Looking out, prospects are very good for this company.
BUY
In the penalty box because of 2 fires in their upgraders. There will be a turnaround in the refineries this summer. Starting to take out some of the costs from their merger with PetroCan. Trading at about 6X 2011 price to cash flow.
BUY ON WEAKNESS
Continues to like it longer term. Have 50-year reserve life in the oil sands asset. BP issue is having a positive effect. Added to his position a few weeks ago and the past few days.
COMMENT
Reasonably good name in Canada and you don't have currency exposure. Prefers beyond Canada with larger firms that have better balance sheets and better resources in the ground such as Shell (RDS.A-N), Exxon (XOM-N) and Chevron (CVX-N).
DON'T BUY
Seasonality for oil is from November 25 until the beginning of May, right now. Chart shows it got turned down from its resistance point and is in a little bit of a channel. If it goes below $27, he would be very cautious.
TOP PICK
Has missed expectations for investors when it was PetroCanada but exceeded them when they were Suncor. The merger gets the great assets of Petrocan and the great management of Suncor. Starting to beat expectations.
WEAK BUY
Coming back on his Buy radar. An awakening technical laggard that looks like it wants to break out. Has taken time to swallow the Petrocan acquisitions and have had some issues in their oil sands project. (See Top Picks.)
TOP PICK
An excellent way to play the oil sands. Good long-term value and excellent assets. Cleaning out some of the PetroCan assets.
DON'T BUY
Can see a lot of growth from this, so doesn't own it. Still a lot of merger risks.
BUY
On an energy pairs trade, what would be the other side for this company? He likes this one on the Long side. The other side might be another oil stock or natural gas stock that he is not so happy with.
TOP PICK
Oldest operator, the best and cheapest. Had a couple of fires lately and it will take them a year or so to sell off the Petrocan assets that don't fit. Expect they will come out the other end with growth and focus.
TOP PICK
They have figured out how to operate in the oil sands. Have been going through some pain with the merger with Petrocan and then disposing of some assets and fixing some operational issues. Very cheap.
TOP PICK
Had problems with upgrader fires and weaker earnings because of integration. World-class management team and resources. Production is ramping up. Next few quarters will look poor but he is looking for production to go up 2.5 fold in 5 years.
BUY
Has been under performing until the last couple of weeks. Had some operating issues with fires at their oil sands. Looks like the worst is over as the stock has rebounded nicely. (See Top Picks.)
DON'T BUY
Somewhere in the middle between cheap and expensive. He can come up with better oil stocks. Prefers natural gas to oil. Cheap natural gas prices are unsustainable.
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