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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (180719)	9/25/2013 6:22:35 AM
From: Dennis Roth	2 Recommendations Recommended By evestor LoneClone Respond to of 206161

Imperial Oil Limited (IMO.TO) 23 September 2013 ¦ 15 pages ir.citi.com IMO Preferred; Cash Flow Inflection in Sight as Kearl Ramps Up IMO vs. SU – Both Suncor and IMO provide investors an opportunity to invest in the oil sands play through a large integrated company. However, we believe IMO provides a better opportunity as the company’s growth spending (Kearl) moves behind it. Furthermore, the recent run-up in Suncor stock has left a wide valuation gap between the two stocks (see analysis in report). We estimate IMO will generate ~16% ROCE and will have a 16% average free cash flow yield using our end of the decade analysis. During the same time we estimate SU will generate ~9% return on capital employed and ~5.6% free cash flow yield.