RE:RE:RE:Why a CPG double is a matter of WHEN not IF....CashHungry wrote: BigJoe, I will be kind to you because you seem a little unglued.
At the price point at which someone is williing to sell something intersects with the price someone is willing to pay for that something is that something's fair value. This is called market pricing and in a capitalistic society it applies to everything from toilet paper to Porches and of course stocks.
So with regards to CPG, and as a holder of that stock, I place its value considerably higher than today's market price hence I will not sell and may in fact add to my position.
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Have your wallet ready tomorrow you should be able to add at a lower price .... again ...
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I believe the stock is undervalued relative to its intrinsic value (not market value) and have arrived at this belief based on fundamental analysis. What is not incorporated in my analysis is sentiment, as sentiment is very hard to assess and even harder to predict. At this point, as we all know, the sentiment towards oil stocks is lousy hence the extremely low valuations. However, sentiment is never persistently stable and hopefully at some point will turn more in CPG's favour bringing the market price closer in anlignment with its intrinsic value of $12 or higher (with more optimistic assumptions). As you mentioined, an NCIB and a big dividend increase could likely be a catalyst to help achieve this objective, but sentiment is fical and unpredictable, so no one can no for sure. However, I am still confident that given enough time sentiment is almost certainly to shift in CPG's favor and that is why I say it is a matter of WHEN not IF CPG doubles.
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