RE:RE:RE:RE:I don't understand why anyone would invest in Suncor nowI understand your point of view, but I think it comes down to relative valuations. If oil supply and demand stayed relatively flat and pricing was rangebound for the foreseeable future, most long reserve companies are trading at 3-5x cashflows. I agree the growth has left the industry, but those are strong cashflows relative to any other industry I can find. Again, there is no growth, but that's a lot of long-term cash AT THESE PRICES. If equity values increase substantially, it's a different story. The reality is, there are many headwinds on any resource development in North America, and I have a hard time justifying multiples on industries in tech, but that's just me.
I'm far from all in on oil, but given its longevity and cash flow generation, I find a good valuation at current equity prices for a position in my portfolio. Saying that I have also had a position in Philip Morris for the last 13/14 years which has given me an annualized 15-20% including a strong dividend and I couldn't imagine an industry with more challenges. For me, it just comes down to valuation and cash flow. Cheers