Suncor Energy Inc

SU-T

(A Top Pick Jun 28/18, Down 19%) He has been disappointed. They don't have control over oil price. operationally they have grown their earnings 2% YoY and production is up 11% YoY. Their refineries are running very well. Great operator. 40 years + reserves. Best of breed integrated oil company.

One of the few Canadian companies he'd include in a group of oil companies, as they're so big. If you own it, be cautious because of oil prices and the slowing world economy. If you're overweight, definitely take money off. In a rebound, SU is the first place money will drift in.

He is bearish on commodities and has been for several years now. Last few years has been considerable underweight to commodities. He has held Suncor however, to get exposure to energy. This is a conservative way if looking to have exposure to energy. Again, need to look at over all portfolio from a sector perspective.

Integrated is helpful as it is kind of a pass-through. Downside protection if oil goes down. Like a billion dollar in free cash flow. P/E is 12 and dividend yield is 4%. Toe in the water in the energy sector but in a chicken kind of way. (Analysts’ price target is $54.50)

CNQ vs SU Both have excellent management teams and are generating free cash flow. Both pay dividends. CNQ-T does not have refining assets. Both are the go to names for investors out of Canada. On a value basis, neither are great value right now. There are more exciting names to own.

It generates $10 billion in cash flow -- $6 billion into developing the resources, the rest is free cash flow. Yield 3.91% (Analysts’ price target is $54.50)

Likes it. Very well run. Thinks energy prices are sustainable at these levels. Nice consistent long-term cash flows. Attractive long-term investment. But realize that it's going to go up and down with the oil/gas quote. Nice dividend, decent valuations.

(A Top Pick Feb 08/19, Up 1%) Played it for the seasonal trade. Came up to the 200-day moving average twice, and rolled over. So he got out. January - May is the optimal time to own. Might have a secondary run in July, August, September.

Good balance sheet. Trading at decent valuation. Growth of 12%. They beat on EPS. He likes it.

Will rail benefit? He thinks rail and the new Alberta government will benefit them. Pipelines are safer, but oil needs to move. SU-T is their primarily holding in the energy space. A fully integrated company that benefits from production and refining. Yield 3.5%.

Defensive? Suncor and CNRL are the predominate weights in the Energy Index. Money has been hiding here and inflating valuations. As Suncor is integrated it is defensive, but we are into year 5 of a wicked bear market for energy stocks. New money will not likely go here, it would be attracted to companies at a fraction of the valuation. He would not own it.

Integrateds have done very well. They've grown their dividend nicely. They have diversified operations, but insulated from the WCS differential. Fine in the long term. Good valuation. (Analysts’ price target is $54.95)

This company has its good and its bad. For exposure in oil, this is a defensive holding. It won't correlate to outright oil prices exactly, but it will be more stable if oil prices consolidate. He likes their integrated nature. It you feel oil prices are going higher, you may want to own a producer.

$60.37 is his target price. You can enter it now. It will benefit from rising oil prices. It's a low-risk trade.