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Daylight Energy Limited (DAY.TO)

36K views 141 replies 25 participants last post by  londoncalling 
#1 ·
Been looking at this one for a while, anyone have insight?
I really like the DIV they have.
thanks
 
#3 ·
Watching this one for a while as well.
Finally bought on Monday, August 8th @ 7.61 for a dividend of 8%.
I usually don't sell a stock for 5 or 10 years unless there is a "fundamental" change. But then we don't know what life may throw at us tomorrow, need for money, health etc.
No one knows what the stock price will do tomorrow either.
 
#4 ·
i initially entered this at 8.31 a few months ago and recent bought again at 7.90 and again at 7.70. I've held a position DAY for a total of 4 months now and i expect to hold it for atleast 3-4 years, i have it setup on a DRIP because you get a 5% discount on the share price. I hold half in my RRSP and half in my TFSA. I may just hold this forever. I've read that LNG is slowly becoming a practicle fuel and their oil play will continue to support the business while NG has depressed value.

i think this may become a long hold for me.
 
#7 ·
i'm getting hit hard... it's a good thing they pay dividends... if i had more money i'd increase my holdings but i don't, guess i'll have to hold out for a while. If they do happen to drop into the $5 range, i maybe have to pull the trigger and sell something else to buy... i like DAY...
 
#10 ·
Maybe I'm missing something since I've only just started to look at dividend stocks but isn't it not good to rely on dividends for stocks with negative earnings per share? They're paying 60 cents per share a year for dividends and are losing 3 cents per share for the year from losses. Surely they cannot sustain these dividends for long?

What am I not seeing in DAY?
 
#12 ·
At first glance they are:

1) loosing money more often than making
2) they are paying out more in dividends then they bring in profit
3) they are financing the dividends with drip and new share issuance, the shares number increases every single quarter diluting the earnings (whenever there are earnings) and making them payout more in dividends as the number of shares increases.
4) the dividends are decreasing each year for the last 6 years.

This is enough for me to stop right there and not even look any deeper.

All that is based on globeinvestor website, I wouldn't touch it and wonder why are others interested in it? The share prices takes a beating as it should.
 
#14 ·
my belief is that they are getting hammered because of the low prices of natural gas... but they do have some exposure to crude oil as well. DAY is actually my gas play and i'm in for the long hold... if they do tank... well... it's still a small part of my portfolio, but in the mean time, i'm still getting a roughly 7% yield at my buy-in price.

True that their recent EPS is negative, however their 5-year EPS growth has been about 85%... i'm hoping they can continue their growth into profitability.

worse case... if and when i do my next buy, perhaps i'll do a covered call with a collar strategy to lower my cost base and try and eliminate some downside risk...
 
#15 ·
i've never held DAY but notice it's always well spoken of by analysts.

homerhomer's points are certainly valid; however what comes to mind is that many other canadian energy companies suffer from the same syndrome - low earnings, dividends too high & not supported by earnings and/or declining dividends since the era when they were energy trusts.

the stock answer is that these companies are surviving but paying their dividends out of cash flow. Daylight says they are gradually using up but still have big tax losses on the books to carry forward for several more years. These losses would be artificially depressing earnings imho.

other positive thoughts from a quick birds-eye view: competent & experienced management plus close narrow focus upon highly prolific districts in NE bc & NW alberta - contrast this latter with talisman which is imho too spread out over the planet.

if i owned DAY, which alas i don't, i don't believe i would bother to collar (puts in these times are far more expensive than calls.) The dividend is good. I'd just wait patiently.
 
#16 ·
contrast this latter with talisman which is imho too spread out over the planet.
I just checked the price for TLM, $14.65, wow, I didn't realize it had tumbled so much as I sold it in the $20's some months ago.

Thanks for reminding me that I made a great decision having sold TLM & ECA; the latter too has been so battered. Had not followed these 2 since I sold, but perhaps is a good time to make my way back in slowly but surely as they are at almost 52 week low. :eek:

I never did follow DAY, but I will look into it as I'm intrigued now.
 
#19 ·
cpg is a good example since, although 100% a light sweet oil play with no gas, there are certain rough similarities to day in the profile that regularly come up for similar criticism.

one is dilution caused by dripped dividends. Another is earnings that appear insufficient to pay the dividend, although cash flow is locked in via extensive hedging program. Debt increases as time passes but assets increase more or less at the same pace. In recent years, cpg financing has been accompanied by significant acquisitions.

i've held cpg since it was a trust; started in my rrsp but all shares are now in non-registered. Dividend has never changed. Steady as an elephant's heartbeat. Twenty-three pennies, ta-dum, ta-dum. I sell call options, too; but not puts since the holding is already a bit excessive.

looking out over the energy field - for those who believe the world can yet be saved - there are some fine bargains. Whoever heard of cnq around $35. Not in years.
 
#20 ·
I have held a position in this stock for a while mainly because of the dividend which has been tied to the price of natural gas. According to this report the dividend yield will not be cut... Take it for what it's worth. I believe that if gas ever does climb the stock will also take off. If not then macro events will continue to keep it at this level. Just my opinion.


http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3661460
 
#25 ·
I think all high yielders are getting hit.
I compared DAY with my beloved SPB and their fall is almost in sync, yet they are two completely different companies.

i think this is a big correction for all high yielders that are paying out over 50% AOCF. With no back support and the lingering recession, people are getting out.

Maybe the new low will stay for a while. I sold a few shares and will hopefully buy again in a few months to try and hedge this downward spiral.
 
#33 ·
I knew that I should have bought more at those low prices.
Oh well.

Press release from Marketwire
Daylight Energy Ltd. to be Acquired by Sinopec International Petroleum Exploration and Production Corporation

Sunday, October 09, 2011

CALGARY, ALBERTA--(Marketwire - Oct. 9, 2011) - Daylight Energy Ltd. ("Daylight" or the "Corporation") (TSX:DAY) is pleased to announce that it has entered into an agreement (the "Arrangement Agreement") with Sinopec International Petroleum Exploration and Production Corporation ("SIPC") for the purchase of all of the issued and outstanding common shares of the Corporation (the "Common Shares") at a cash price of C$10.08 per Common Share, for total cash consideration of approximately C$2.2 billion. The transaction is to be completed by way of a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement"). The consideration offered for the Common Shares pursuant to the Arrangement represents a 43.6% premium over the 60-day weighted average trading price of the Common Shares on the Toronto Stock Exchange up to and including October 7, 2011. SIPC is a wholly owned subsidiary of China Petrochemical Corporation ("Sinopec Group") and undertakes overseas investments and operations in the upstream oil and gas sector. Sinopec Group is China's largest producer and supplier of oil products and major petrochemical products.

http://www.theglobeandmail.com/glob...20111009&archive=ccnm&slug=201110090734604001
 
#34 ·
I knew that I should have bought more at those low prices.
Oh well.

Press release from Marketwire
Daylight Energy Ltd. to be Acquired by Sinopec International Petroleum Exploration and Production Corporation

Sunday, October 09, 2011

CALGARY, ALBERTA--(Marketwire - Oct. 9, 2011) - Daylight Energy Ltd. ("Daylight" or the "Corporation") (TSX:DAY) is pleased to announce that it has entered into an agreement (the "Arrangement Agreement") with Sinopec International Petroleum Exploration and Production Corporation ("SIPC") for the purchase of all of the issued and outstanding common shares of the Corporation (the "Common Shares") at a cash price of C$10.08 per Common Share,
I hold DAY...can anyone please to explain me how it's gonna affect me? and what I should do?

Also how nwxt statement will affect stock?
"The previously announced $0.05 per Common Share dividend payable to holders of record on September 30, 2011 will be paid on October 17, 2011, but under the Arrangement Agreement Daylight has agreed to suspend future dividends."
 
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