SU
Top Q3 Picks Of Energy-Focused Hedge Fund Lucas Capital Management
by: Ganaxi Small Cap MoversDecember 15, 2011
https://seekingalpha.com/article/314104-top-q3-picks-of-energy-focused-hedge-fund-lucas-capital-management?source=yahoo
Excerpt:
Suncor Energy Inc. (SU):SU is an integrated energy company, engaged in the development ofpetroleum resource basins in Canada’s Athabasca oil sands; acquisition,exploration, development, production and marketing of crude oil andnatural gas in Canada and internationally; transportation and refiningof crude oil; and marketing of petroleum and petrochemical productsprimarily in Canada. Lucas cut $6 million in Q3 from its $13 millionprior quarter position in the company. SU is undervalued, trading at adiscount 7-8 forward P/E, while earnings are projected to increase at acompound 44.5% annualized rate from $1.73 in 2010 to $3.61 in 2012,compared with an average 44.4 P/E for its peers in the Canadianintegrated oil & gas group. Also, it trades at a 1.3 P/B and at 5.4P/CF, a discount compared with the averages of 2.6 and 52.8 respectivelyfor the peer group.