RE:RBC Outperform $53.00!! National Bank's Travis Wood giving SU a buy recommendation and a PT of $73 is great assurance that SU is very undervalued at this price. I am so fond of Travis that sometimes I buy a stock just because he recommended it, not because I know anything about it. I still put a lot of value (and faith) in reputable analysts, not the ones who "throw darts". I think the ones with proven track records, and high ranking, do care about their reputation, and they must know the stocks enough to rate it.
I recently follow Dan Payne from National Bank. Man oh man, I am all over the place with his recommendations, from KEL to TVE to BTE etc. All bought at recent highs and a large sum, too. All down >25% as at this writing.
While I expect a stellar QE when these companies begin reporting next month, I don't anticipate a big run. I'm afraid they might even go down given the aggressiveness of the central banks with their rate hikes. They have been clear that they will raise the rate above the neutral rate of 3%. Let's suppose they take a pause at 4%. The banks' prime rate will be around 6.2. This is also the lowest rate you can get for margin. I doubt many people can afford to pay close to 7% to borrow to invest in non-dividend paying stocks whose volatility is just appalling. People also don't have the luxury of waiting it out when they invest on margin, and this is too commonplace these days.
And on top of this we have the windfall tax bombshell hanging loosely over our heads. The good thing for me is that I have become somewhat "numb" after investing in energy. :-)