SU on BNN Market Call: Is Ninepoint back in?Interesting show on BNN market call this week, with Eric Nuttall as it pertained to Suncor.
A caller asked about SU, and Eric gave his take on it's challenges and potential (about 37 minutes in).
https://www.bnnbloomberg.ca/video/full-episode-market-call-for-friday-february-24-2023~2630945 Safety issues are acknowledged and are being addressed, as well as basemine extensions.
He is happy the new CEO is an outsider.
He considers the downstream assets a crown jewel, but figures it would take about 4 - 5 years to turn the 'Mother Ship' around.
That said, his metrics on Suncor in it's current state are at $100 oil, FCF is at 31%, 23% at $80.
The upside potential is that if Kruger is succesful in righting the ship, there is a potential for a double in the stockprice.
As SU is such a major component of the index, there is a lot of FOMO potential when the sector turns do drive the share price up. They have a new CEO, just reported a fantastic quarter, deep value, and expectations have been completely reset.
"It has made the story much more intriguing as it was 3-4 months ago."
" So you are not buying at this stage?"
" I have no comment on that...(smile)."
IIROC regulation 3622 (1) (ii) which covers quiet periods after actively acting as a funds manager, prevent him from discussing it for 3 days. (page 157)
https://www.iiroc.ca/media/17141/download?inline Not that many here care about what EN does, but he does raise some interesting points to consider.
If he is indeed buying back SU at this point, the way his historical investment parameters and conditions are, he obviously sees that it is mispriced, and there is a catalyst to propel the stock upward.
It is the best place to put his client's money at this time above all others.
I guess we will know if he has accumulated SU after Morningstar fund reports come out next month.