Monday, September 14, 2020

SU.TO stock: Better Recovery Stock: Suncor (TSX:SU) or Cineplex (TSX:CGX)?

Sept. 14, 2020

Here is the article. 

Suncor: Can this energy stock return to form?

Suncor is a Calgary-based integrated energy company. Its shares have dropped 55% in 2020 as of close on September 10. Investors can expect to get a look at its third-quarter 2020 results in October.

In Q2 2020, the company lamented lower demand for crude oil and refined products due to the COVID-19 pandemic. Unfortunately, this combined with a supply increase from OPEC, which drove down commodity prices, generating downward pressure on the Canadian energy sector. Funds from operations came in at $488 million, or $0.32 per share compared to $3.00 billion or $1.92 per share in the prior year.

Last spring, I’d discussed why Suncor was a stock that was worth stashing in a TFSA. The stock last had a favourable price-to-book value of 0.7. Suncor last dropped its quarterly dividend of $0.21 per share, which still represents a solid 4.6% yield.

Actionable item

As long as Suncor will not file bankrupt, I like to continue to work on investment on Su.To. I like to recover my capital loss around $17,00 dollars first. 


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