Suncor Energy Inc T.SU

View of the Acquisition by the Bond Rating People

[Experienced]

When I was in "the business", the people I listened to the most closely were not the buy or even the sell side analysts but rather the fixed income people. In this world, the people are always looking for what could go wrong and then make a judgement after weighing these factors.  As a general rule, they usually have better information and tend to be more progmatic.

After my initial response to mrmomo's question about whether this was a good deal or not and reading the subsequent posts, I thought to myself - why not do what you used to do and find out what the bond guys have to say?

Here is how one of them feels about the deal....

https://www.fitchratings.com/research/corporate-finance/suncors-proposed-acquisition-of-totalenergies-oil-sands-assets-is-rating-neutral-27-04-2023

FYI

[Obscure1]

Good find!  It is nice to read intelligent input from an indepenent third party.  On a "business as usual" basis, the acquisition looks to be nicely accretive for SU which the market should appreciate. SU has been deleveraging which has been good in terms of pulling the company off the ledge created by Covid.  However, deleveraging also makes SU a dull boy.  The

[Experienced]

True, but in the PR they seem to indicate that they still intend to deleverage and that borrowing to buy out Total is a blip in their deveraging plan. Frankly, the market reaction was what I had expected based on the promise to raise the dividend by 10%.  In hindsight, I regretted pulling my finger off the trigger when it briefly dipped below 40 at the open but one of my buys in the last few

[meritmat]

Maybe Boss. But all the major Canadain oil companies are doing the same.  Cve/CNRL/IO.   Might as well stick to what they best.   Hehe was working in some Edge on some land I rent and a new wind project just got put up.  Massive wind turbines.  All of a sudden all of them stopped.......maybe grid was full, maybe shut down for maintenance who know.    I still

[Experienced]

Perhaps.."Sticking to your knitting" is great if people still need your knitting. Skill testing questions for you my friend.   1.....How many companies that are currently in the Dow30 were original members of the Dow? 2...the Dow expanded to 30 companies from the original 12 in 1928.  How many of those companies that were in the first Dow30 don't exist anymore? Not

[Torontojay]

Bond investors are smarter than stock investors

[mrmomo]

Just a few thoughts Experienced. Though i agree with you that having a "diverse" point of view on a certain investments/developments is a prudent course of action, the "professionals" you speak have aren't as "unbias" as you believe and they have their own agendas/motives when assessing companies/srocks or any other entity. Specifically those bond rating agencies

[Experienced]

Good points my friend... agreed If you take a close look at the wording in my post, I carefully chose my words - "listened to them more closely than...."  The reason I chose those words was that I did not rely on them completely or take their word as gospel.  What I did find over the years was that the buy side and sell side analysts were much more an extension of the firm'

[mrmomo]

Well said & explained Experienced.......I COULD NOT have said it better! But i will leave this topic with the final thoughts and wise advice from Experienced's wonderfully stated last paragraph. Some WISE words to live by ALL....... "Bottom line here is quite simple.  Get the most information you can to make an informed decision and figure out who you can trust the most in a