Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

risks and rewards of HSE

[netgenx]

I started nibbling today picking up 400 shares @ 27.66

On the reward side; we are trading at levels we haven't seen since late '05
                                     the yield is decent at 4+%
                                     sesonality indicates that HSE has done pretty well over this 3 month period the last 4 years
                                     a spinoff of assets or significant find would be positive
                                     potential cost benefits from today's upcoming Alberta review
                                     Li Kai Shing's China connections should prove useful long term

On the down side; not withstanding the claims of others here I see no sign of significant insider buying, 
                                  at 1.68 earnings, a 1.20 div. is not sustainable
                                  oil prices are currently at top of recent range

my expectation is that we see $30 in the next three months