http://seekingalpha.com/article/5285...is-undervalued
I picked up 100 shares earlier this week to bring my position to 200 shares. As my article suggests, this stock is way undervalued.
http://seekingalpha.com/article/5285...is-undervalued
I picked up 100 shares earlier this week to bring my position to 200 shares. As my article suggests, this stock is way undervalued.
The dividend yield on this stock right now is very enticing!
Dividens have also increased siginificantly - looks like from $0.05 to $0.30 and very recently up to $0.35...!
Despite the dividend increase the payout ratio is only 60%.Originally Posted by Kaitlyn
The 6.8% divy is very enticing.
Does anyone know whether they are one of the operations that does their own refining and thus is not penalized by the Cushing discount? I think Suncor has this advantage but IMO doesn't if I recall correctly.
CNQ is also looking very cheap these days but they are penalized more by the low price on natural gas than the others here. They are growing the divy at a fairly high rate but it is still very low on an absolute basis and it looks like they have room to grow it.
Athabasca oil is also very cheap considering the assets they have to develop over time.
I think the true scarcity of oil is being underestimated these days because Iran is still producing and Saudi Arabia is in overdrive. Many of the newer sources that are being found are very expensive to develop and really need a floor price of $80-90/barrel to be considered economic. I wouldn't be surprised if there is some cutback upcoming in the development of the oil shales given the faster rate of depletion than is currently appreciated.
I do feel the Canadian oil operators are going to be selling artificially cheap so long as we lack the ability to get the oil to a refinery with access to the sea for export.
The government needs to step up and dictate rules to all the parties that are in the way (re: Native Indians on the West Coast). This resource is needed so we can fund their welfare programs and it is for the good of all Canadians including them. A fair settlement will be dictated for rent of the landspace for the pipelines and the companies will be responsible for paying any environmental damages that are incurred.
Sorry... kind of new to things. What do you mean the payout ratio? Payout is 60% of the earnings? Why does that even matter? You saying it should be even higher...?
oh, my. This point of view prevailed from 1542 to the 1970s, but i didn't think anyone today would offer it in serious mode.
no one today would label first nations "in the way," when they are, in fact, living upon their own hereditary lands.
no government or oilco today would "dictate" a "fair settlement ... for rent of the landscape."
fortunately, enbridge itself is lightyears ahead of this dated view. The pipeline-to-kitimat consortium is offering partnerships to first nations who join them.
http://www.northerngateway.ca/aborig...r-aboriginals/
" Northern Gateway is offering Aboriginal people a 10% share in a $5.5 billion project. The long-term financial benefits for participating Aboriginal shareholders will be significant. Aggregate equity ownership is expected to generate approximately $280 million in net income to neighbouring Aboriginal communities, over the first 30 years.
" Becoming an owner in this project means Aboriginal groups are going to see cash flow within the first year of operations. Through equity ownership, Aboriginal people will be able to generate a significant new revenue stream that could help achieve the priorities of their people – such as improved health care, education and housing."
however, the campaign to recruit first nations as enbridge partners is not going well. First nations have become polarized. Some oppose the use of their land for cultural & spiritual reasons. Others holding out may be looking for bigger royalties & a higher level of skilled hiring along with training for the same, plus the holdouts probably want bigger remediation bonds.
Yup, pe in the 8's, it's on a limit order right now. Already own in the 19's, don't have a problem doubling or tripling position at these prices.
With Greece leaving the Euro, this is possible.
Payout ratio is dividends/net income. A payout ratio of 60% is healthy, the dividend is not so large that it is restricting the cash flows of the corporation. A payout ratio over 100% is scary because the company is paying out more than they are earning, the only way to finance future growth and operations is either by taking on debt or issuing equity, neither of which are good.
Last edited by Ethan; 2012-05-27 at 06:17 PM.
Syncrude upgrading facilities convert raw bitumen to synthetic crude oil (SCO). SCO is comparable to light sweet oil that is immune from the heavy oil discount. North American light sweet oil is typically measured at West Texas Intermediate (WTI) pricing, during 2011 SCO averaged a sales price $7.32 greater than WTI due to selling in certain US markets that price oil on other measures (such as Brent and Louisiana Light Sweet).
Hopefully this goes under $20 tomorrow, I will start buying again.
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