RE:RE:RE:Tmx alone will double Suncors s/p...Wynjoe wrote: "Part"of the problem with Suncor is its access to foreign markets, tmx will help alleviate this problem. "Perception"in all stock markets is the biggest driver ,so I still believe the tmx pipeline can add more value to Suncor then financial accounting. I already believe s/p should be double from where we now sit, so any catylsts can double us very quick, let alone a pipeline to shipping lanes.Suncor is an EXTREMELY STRONG BUY. I also think dividends could and will go way up from here in the not too distant future.
I agree that TMX will help SU as I pointed out in my post. That said I do not believe that access to TMX would double the SP of SU. IMO that is nothing less than wishful thinking.
In terms of SU being undervalued, by most common metrics based on FCF per share etc one could conclude that the company is undervalued by the market. The problem as I pointed in numerous previous posts is that SU is not considered a growth stock since it may be able to increase production a bit once Fort Hills is becomes fully operational but that is offset by the longer term requirement for SU to get environmental approval to continue production at the base plant in the next 10 years and all the risks associated with that approval in the current political environment. When you combine this with the public perception (probably incorrectly IMO) that the world will need less oil in the near future, this leads the pros to look elsewhere in the universe of stocks to find companies that have the promise of greater total returns (SP growth plus dividends).
Again as I said before, SU needs to develop a plan for meaningful growth and communicate this plan in an effective way. To date there is scant evidence of this and hence the seemingly undervalued SP.
For these reasons I took my profits in SU not long ago but at the same time keep close tabs on the company looking to get back in if mgt gets their act together. IMO if they did get their act together with a growth strategy then your dream of a double in the SP could well become a reality and I would be backing up the truck. Until then the SP will flounder unless there is a huge increase on the price of oil.