Suncor Energy Inc. T.SU

Clearing up the overhang

[Marner16]

Penny stock investors are often faced with cleaning up overhangs.  Once public companies mature, investors don't expect to have to deal with the numerous gyrations in the supply/demand of shares associated with start ups.

The ESG movement has created the biggest overhang I have witnessed in my 45 years of investing. 

Retail SU shareholders should understand that the institutions that control the market are in the midst of a mindset change about energy investments and us little guys are simply observers. 

ENB has witnessed the exchange of almost a billion shares (half of the float) in MOC and LOC orders since last July.  Either somebody is accumulating a huge position in ENB via legal exemptions (or by more nefarious means) which is what Brookfield did with IPL, or ENB management is facilitating the historic shift from institutions that have been mandated to exit oil investments to institutions that are prepared to hold investments that they believe/know will outperform the market.

SU is going to have to undergo the same process of clearing the overhang.  It can be a painful process for retail investors to sit and watch the game being played out. If you have the stomach for it, the payoff will likely be substantial.  If you don't have the patience to play the long game, there are a multitude of shiny stories to chase.

There is no right or wrong strategy, just differences in belief systems.

[Fishermen]

really informative.

[NPCexe]

It also doesn't help that crypto made it to the scene and you have dogecoin going up 49% in one day. How can SU compete against monopoly money that everyone is convinced will turn to gold?! Forget tangible essential services, they're just not needed anymore in the eyes of millenials, despite the fact that they run the whole country.

[Plus50]

Well shut in the oil and gas production for a month or two. Then the millenials can put bitcoin into there cars to get to work. See how that works for them 

[Oldnagger]

Very interesting perspective, but in my opinion there is a very loud clash coming as demand for petroleum ramps up quickly versus renewables which are very long term due to their capital intensive nature. I truly believe that a lot of instutions are going to need to change back their mindsets in a hurry. No one in the petroleum industry wants to restore Capex which is now running at less than half

[bbwibone]

Renewables are not going to ramp up nearly in time - not even close. Oil prices are going to rise until demand is hurt. It's going to be a long, expensive summer.