| I wasn’t going to make a post about Suncor for a | | | | for these assets if crude makes it back into triple digits. |
| couple weeks, but with an 8% drop today I feel the | | | | The Suncor/Petro-Canada deal is a stock swap, so |
| company is worth looking at right now. As I mentioned | | | | there aren’t any financing issues. Acquiring |
| earlier today in my analysis of Precision Drilling, I’m | | | | Petro-Canada also gives Suncor some diversification |
| bullish on the energy sector in general. On a | | | | via assets in the oil refining and retail sectors. |
| percentage basis, I’m more excited about natural | | | | Click Here to Visit and Learn More About SU |
| gas than crude, but I’m also building my positions in | | | | Furthermore, Suncor’s assets are located in |
| oil companies on weakness like we saw today. | | | | Canada and you can’t get much more politically |
| Click Here to Visit and Learn More About Suncor | | | | stable than the Great White North. Given the current |
| Energy | | | | instability in Iran and Chavez’s continued lunacy in |
| Suncor has a few major things going for it right now. | | | | Venezuela, “friendly oil” will continue to be a |
| First, its acquisition of Petro-Canada (which looks about | | | | popular choice, although the environmental impact of |
| as secure as a pending merger ever can) will improve | | | | the oil sands isn’t exactly minimal. The stock is up |
| Suncor’s balance sheet (which is currently loaded | | | | nearly 100% off its lows from early March, but still off |
| with debt) and give management a chance to turn | | | | more than 60% from its high last year. Suncor’s |
| around a wide range of quality assets which never | | | | shares are definitely volatile, so owning them is not |
| seemed to perform well under Petro-Canada. In | | | | always the most comfortable ride. However, if |
| addition, Suncor’s major assets (oil sands projects) | | | | you’re at all bullish on the long term prospects of |
| don’t exactly produce the cheapest oil on the | | | | crude oil, this company should be included in your |
| planet. While this would appear to be a negative | | | | portfolio. I do own a position in Suncor and I’ll |
| attribute, it means there is huge upside profit potential | | | | probably buy some more if it drops again tomorrow. |