TSX:HSE.PR.B - Post by User
Comment by
onec007on Mar 20, 2020 2:42pm
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Post# 30831456
RE:RE:My two cents
RE:RE:My two centsCouldn't agree with you more. Everyone looks like a rockstar making a deal, but in the end it is all about earnings and cashflow. Balance sheet means everything.
On Jan. 17, 2020 it was still trading at $20.7480 and still pumping the high dividend yield and Husky was trading at $9.19 (good ol days). Since then Husky has cratered but VET has crash much faster and the percentage is astonishing. VET has literally no cash just assets that they can't even sell if they wanted to yet still has clost to $2 billion in debt.
MEG has definitely fallen a lot but it is also in the same boat limited cash at just $200 million vs. over $3 billion in debt.
BTE, GTE, WCP you name it they have all been destroyed because they piled on way too much debt and all are just asset (equip and infrasturue heavy).
In the end, I think you will see a mass exodus in the industry and I am just praying that Husky makes it out of this all. SU, IMO are my other picks. CNQ and CVE have debt and logistical challenges, but at least have lower costs that the mid-tier.