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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Paul Senior who wrote (20782)3/2/2005 7:57:07 PM
From: Gulo  Read Replies (1) | Respond to of 78774
 
CNQ and SU are probably the best bets for U.S. investors that want to avoid the COS.UN Royalty Trust. The smaller or less developed players will fluctuate more with sentiment because their income is a couple of years away.

CNQ is an extremely well run company and has been since its inception. There is little reason to think it won't continue to grow for the next decade as well as it has in the last. Its recent run may take a few months to consolidate, though.

Suncor is suffering a bit from a fire it had in January that cut production in half. Once they report a firm restart date, the stock should climb nicely to catch up with the rest.

Of the two, I'd buy Suncor Sept 46 calls. Or one could buy CNQ and write covered calls, as the options are fairly high priced right now.
-g