TSX:HSE.PR.B - Post by User
Comment by
onec007on Nov 28, 2019 3:25pm
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Post# 30403329
RE:RE:Do you remember?
RE:RE:Do you remember?The supply overhang is still haunting the market. I think shale needs to implode before we see a huge increase because many are simply operating on borrowed time and cash.
I traded out of Cenovus for Husky for the following reasons:
1. Less debt
2. More diversified
3. Less reliant on takeaway capacity
4. More integrated with upstream/downstream/retail/refineries
I have always believed that Husky is undervalued and often trades at a ridiculous valuation until certain catalyst realigns the share back to normal valuation. 1/2 book value is beyond insane and Husky has proven time and time again that it slowly will slug it out to hit $20, but it does even though it can takes years. At $10 you are getting an extremely stable company with significant cashflow generating capability in 2021-2023. I will wait for years to double my money and in the meantime will be happy receiving the dividend, which by the way is only 40%. Payout ratio this low makes me feel comfortable owning because the company is being extremely conservative and can pay without borrowing debt to fund dividend unlike other producers.