over 2 years ago • 2 mins
I’m a Swiss investor looking for undervalued stock. I have a diversified portfolio across the globe, always looking for hidden treasures.
Medium-term investment in Canadian oil company Suncor (ticker: SU). Despite the increasing demand for electric and other sustainable energy sources, I am convinced that, in the mid term, oil will remain one of the top resources to fuel global growth – especially in emerging markets. In addition, I believe that Suncore is able to transform its business over time and invest heavily in research to increase the mix of energy sources provided.
Suncor is an energy provider in Canada. Their operations include offshore oil production, oil sands developments, biofuels, and wind energy.
The company shows strong growth indicators. If it manages to keep increasing business volume – especially cash-flows – I would expect growth of 20-30% over the next 2-3 years.
The one risk I see is that oil won’t have such a great comeback as expected and emerging countries will jump directly to electric or other energy sources – as they did with the internet. I will mitigate my risk simply by diversifying my portfolio. I will invest in alternative energy source providers or battery producers.
What do you think of Raphael’s pitch? Are you equally sunny on Suncor? Tell us here.
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