Suncor Energy Inc T.SU

Beaten down and left for dead. Time to buy

[MigraineCall]

There are so many reasons not to buy this stock now, a list as long as your arm. In fact, I do not recall the negative sentiment being worse. The price has been pounded down to the floor, and many funds continue to divest themselves of all oilsand investments.

Management clearly has their work cut out for them over the next while to regroup, refocus, rebrand, announce dividend increases, get green, and do the positive things that convince the market of its value. It doesn't take much of an announcment to do that, and could come after any quarterly earnings report. This company is not going to roll over, die, and go away. It has fantastic potential for a turnaround, and due to that, I think at it's current price, it presents an excellent opportunity to get in before the ship sails as they make the necessary changes. 

For me, I have recently added many thousands of cheap SU calls now for 2022 to my core position, as the risk reward potential even for options seems too good to pass up at these levels, and at these low oil prices. I do expect it to languish, bouncing on the bottom for a while yet before it turns, as you can never pick the exact bottom. 

However, Buffett says buy when there is blood in the streets, and one certainly has to wear rubber boots these days to walk on Suncor Street.

[Joe455]

We are living in an ESG world right now.

[Tommy123]

This post has been removed in accordance with Community Policy

[PabloLafortune]

Problem is there are lots of alternatives in oil and gas. Check out Marathon Oil (MRO). Very profitable ($1.9B FCF at $65 WTI on $1B capex, $9.2B market cap). Also down 10%. Despite the FCF yield of 20.6%.  Is it a more "comfortable" investment for US/Foreign investors than SU? Probably. Better line of sight to FCF for the remainder of the year. More balanced use of FCF. 

[goliath06]

my suggestion to you is why don't you MRO and leave US the fock alone..thank you very much........

[goliath06]

why don't you ////////// BUY/////// MRO AND LEAVE

[Vlosun]

well said

[PabloLafortune]

Goliath, I apologize if I upset you... I was simply pointing out the REALITY that a lot of these oil and gas companies are trading in the 18-22% free cash flow yield and on that metric, there is nothing particularly attractive about SU at current prices compared to others. It was overpriced before and now it corrected itself. Same thing happened with ARX. Now for some better news, prices at the