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

RE:RE:The Market is speaking

[Olympic]

I suspect the initial drop was a result of an unexpected shift in HSE's strategy, together with the uncertain nature of a hostile acquisition.

For years HSE banged the drum of a large, secure company during the oil slump.  We heard Peabody confirm in presentations/conference calls the value of being an integrated company, with diverse portfolios and up-mid-down stream assets.  Not long ago Peabody noted the limited exposure HSE had to WCS differentials and thought HSE was better aligned to Brent than to WTI.  It introduced the dividend only after the balance sheet was firm and prices were secure.  

The MEG announcement was unexpected, and unexpectily out of character.  Don't get me wrong, I like the potential growth play ... but I also understand why some shareholders traded out.  The share price will recover soon and all will be happy, inlcuding former MEG - soon to be HSE - shareholders.