RE:RE:Burgundy asset management viewThat's a good point. If COS's Syncrude stake is part of SU, it adds to the diversification of SU, and it does add value to SU. COS on its own is just a fraction of Syncrude, and it is a different animal though. It's just a simple pure play upstream asset.
I see COS as simply a leveraged bet on the price of oil. When oil goes up, it will go up at a faster rate than the increase in oil itself. It works both ways, when oil goes down, COS share price drops at a faster rate then the drop in the price of oil.
SU is completely different, because it has upstream and downstream operations. If COS is aborbed by SU, the argument is that you lose some of the leverage effect when the oil prices rise.
saintpeeter wrote: I still don't understand what people are fussing about. There is a good case to be made for the value of the asset. But what do we care if we get that value thru COS shares or SU shares?
What is the difference?