Suncor Energy is a buy, but be prepared to change when oil prices peak, says Jim Cramer

On Friday CNBC’s Jim Cramer advised investors to buy shares in the Canadian oil producer Solar powerbut only if they are confident that oil prices will remain high.

Cramer’s comments come after activist investment firm Elliott Management, which holds a 3.4% stake in Suncor, called for the company scramble its management and take other steps to improve its performance.

“I think Suncor’s future is less about this activist campaign and more about where the price of crude oil might go. If you think it will stay high, this could be an absolutely fantastic stock because tar sands can generate huge earnings growth. , “the”crazy money“said the host.

“However, in effect, if you believe oil will soon peak and drop significantly, this stock will be a dog and no matter what changes. [Elliot Management] do, “he added.

Shares in Suncor were down 2.58% on Friday, but hit a new 52-week high earlier in the day.

Elliott Management cited “missed production targets, high costs and, tragically, a series of employee deaths and other security incidents” in its letter.

Suncor he answered to Elliott’s letter stating that it will review the investment firm’s recommendations.

“Whether you look at it from a financial perspective or a purely human perspective, this is not a well-run business,” Cramer said of Suncor’s track record.

However, he said he believes the company has more room to function as the price of crude oil is on the rise, meaning the company could become a high-performance company if it takes Elliott’s stresses into consideration.

Brent crude futures settled at $ 109.34 on Friday while US West Texas Intermediate Crude Oil set at $ 104.69.

“I think the stock went up … yesterday because Elliott, confident of Wall Street, can push Suncor’s board to unlock value,” Cramer said. “Here are some free tips for Suncor directors: he works with these guys.”

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