MENU

Fool Canada’s first 1,000%+ winner?

Our Chief Investment Advisor, Iain Butler, and a team of The Motley Fool’s most talented investors from across the globe recently embarked on an unprecedented mission:

To identify the 20 Canadian small-cap companies they believe have the best shot at earning investors like you gains of 1,000%+ over the coming years.

For the next few days only, you can get the names and full details on these 20 potential “10-baggers” when you join Iain and his team in a first-of-its-kind project they have dubbed Discovery Canada 2017.

Could Oil Rise in the Next Few Months?

With some analysts calling for big oil price increases in the next few months, given the increased geopolitical risk that we are seeing, this may be a good time for investors to review their energy holdings and add some attractively priced names to their holdings.

Last week’s U.S. missile strike in Syria has reminded investors of how precarious the geopolitical environment really is. And while Syria only produces a small amount of oil, the Middle East in general is politically unstable; ripple effects could affect other regions with a larger amount of oil production. Add to that the shutdown of Libya’s biggest oil field, which produced 200,000 barrels of oil per day, due to clashes and civil unrest, and we can see how the risk premium related to oil is rising again.

Suncor Energy Inc. (TSX:SU)(NYSE:SU) has a dividend yield of 3.06%, an attractive valuation of 10.5 times last year’s cash per share, under seven times this year’s cash per share, and a very healthy balance sheet which has supported a growing dividend, even in a time of “low” oil prices.

Suncor is an energy name that should continue to thrive. The company acquired Canadian Oil Sands in 2016 in a move that was made at oil prices of in the $30 range; oil was at a cyclical low — the best time for a company to be an acquirer.

In the fourth quarter of 2016, the company reported a 57% increase in operating cash flow per share, a 27% increase in production, and a decreasing cost profile with cash operating costs in its oil sands operations down to $25 per barrel. The company also announced a 10% increase in its dividend, which should further solidify its position as a great income-generating stock.

Rig counts continue to rise, which is also a bullish sign for the sector. In Canada, the March rig count increased to 253 rigs compared to 88 in March 2016, according to Baker Hughes. In the U.S., the rig count was 789 — an increase of 65% versus March 2016.

Mullen Group Ltd. (TSX:MTL) is another best-in-class company that should thrive in the coming year. While fourth-quarter 2016 results were dismal, the company’s balance sheet is in good shape with $273 million in cash as at the end of 2016 and $75 million in unused credit.

Mullen has also been a buyer in the cyclical low environment. Mullen’s oilfield services segment has been made even stronger with the recent acquisition of Envolve Energy, a well disposal business that generates a 25% return on capital employed and will add annual revenue of $8 million.

1 Massive Dividend Stock to Buy Today (7.8% Yield!) - The Dividend Giveaway

The Motley Fool Canada's top dividend expert and lead adviser of Dividend Investor Canada, Bryan White, recently released a premium "buy report" on a dividend giant he thinks everyone should own. Not only that - but he's created a must-have, exclusive report that outlines all the alarming traits of dividend stocks that are about to blow up - and how you can avoid them.

For this limited time only, we're not only taking 57% off Dividend Investor Canada, but we're offering you special access to two brand-new reports, free of charge upon signing up. They will outline everything you need to know so you steer clear of dividend burn-outs AND take advantage of the dividend giants in the Canadian market.

While this offer is still available, you can find out how to get a copy of these brand-new reports by simply clicking here.

Fool contributor Karen Thomas owns shares of MULLEN GROUP LTD.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to find out how you can claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.