Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

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 Clemxb7on Aug 28, 2022 6:33pm
262 Views
Post# 34925667

Share buybacks create growth in per share metrics

Share buybacks create growth in per share metricsYes Suncor is a growth stock.

As share count goes down per share metric go up. A company with 1,000 shares out that makes $1,000 earns $1.00 / share. A company with 900 shares out that makes the same $1,000 earns $1.11 / share. Buying back 10% of shares = 11% growth. Suncor’s is a growth stock because it’s per share metrics like profit go up as share float goes down. This is an increasing good thing because as share float goes down larger % of the float gets bought back so you get constantly increasing returns in a reverse compounding interest sort of way.

Its just growing in different ways. When you like a so called "growth" Stock like Netflix (which very predictably BTW isn't growing anymore) you like it because revenues are increasing and hopefully Earnings per share then increase. As earnings increase the stock becomes more valuable because it has more ability to give larger returns to shareholders. So you assign a stock like Netflix a 50 or 60 PE because the company will theoretically grow into its valuation over time (though usually most companies hit a wall at some point like Netflix just did).

Ultimately when a company gets its valuation stretched so much and then a liquidity crunch comes to the equity markets shareholders in such companies realize they only hold “imagination earnings” which they realize are inferior to real world earnings.



<< Previous
Bullboard Posts
Next >>