Q: Looking to increase exposure to energy in TFSA by either adding to SU (2.7% to 5%) or take-up new position in either CNQ or TOU. Growth and income is the goal over 2-3 year hold. How would you guys proceed?
5i Research Answer:
We like all the names mentioned. That said, we think adding TOU could make sense here given that TOU is more of a gas play rather than pure exposure on oil. In addition, TOU is also pretty cheap and does possess a solid track record of returning capital aggressively to shareholders. We like CNQ, but TOU is more focused on growth and we think would complement SU well.