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

RE:RE:RE:RE:All the metrics for valuation out the door

[oilandgasmick]

Actually, if you look at the metrics today they are as good/better than what HSE had in 2014 when it was trading at 36 bucks a share. Debt ratio is not of concern but it was becoming issue when the stock price was much higher.

As for production growth, I don't believe that's the issue.

Thermal projects in Western Canada will add another 50K bbls. a day over the next few years so production growth its taken care of but the real problem is that most analysts are suggesting that there will be no free cash flow over the next 24 months so what is the hurry to buy? 

Those short sighted statements are enough to send many investors to other places--basically named SU and CNQ even though they are trading at much higher price/earnings ratios and much better value relative to book.

The market is also leery of the decision in 2016 to suspend dividends in their entirety. It may ultimately have been financially prudent to do so but in terms of PR it was a disaster and pension funds promptly dropped the stock. In many cases they had to because their rules prohibit owning common stocks that don't pay a dividend.

This is where HSE constantly falls down--it's not reality but rather perception.

Tales of no market access are another myth. The company has had relatively few problems getting their product to market and they have excess refining capacity which allows them to buy/upgrade/sell along a production corridor that many other companies would only dream of.

Then of course there are all these conspiracy kooks with tales of Chinese government spies and massive fraud, money laundering etc. Of course, its complete nonsense but there are people who believe this "Illuminati" garbage. In contrast, Su, CVE and CNQ have no international connections that would solicit any good spy novels.

Add it all up and you see why the price is so depressed.