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Suncor Energy Inc T.SU

Alternate Symbol(s):  SU

Suncor Energy Inc. is a Canada-based integrated energy company. The Company's segments include Oil Sands, Exploration and Production (E&P), and Refining and Marketing. Its operations include oil sands development, production and upgrading; offshore oil production; petroleum refining in Canada and the United States; and the Company’s Petro-Canada retail and wholesale distribution networks (including Canada’s Electric Highway, a coast-to-coast network of fast-charging electric vehicle (EV) stations). The Company is developing petroleum resources while advancing the transition to a lower-emissions future through investments in lower-emissions intensity power, renewable feedstock fuels and projects targeting emissions intensity. The Company also conducts energy trading activities focused primarily on the marketing and trading of crude oil, natural gas, byproducts, refined products and power. It also wholly owns the Fort Hills Project, which is located in Alberta's Athabasca region.


TSX:SU - Post by User

Post by Marner16on May 04, 2021 11:40am
237 Views
Post# 33123593

Clearing up the overhang

Clearing up the overhangPenny 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.
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