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

Share buyback

[autofocus111]

Why is HSE so reluctant to do a share buyback? After the MEG takeover attempt collapsed, and with the share price dragging along the bottom, why not announce a big buyback? Dividend raises don't appear to be attracting investors to the stock. The value is there. The cash is there.

[Dogsbreakfast4U]

The company is owned at 70% by LKS- LKS Holdings. According to Peabody this makes share buyback a poor option.

[oilandgasmick]

And they are tight wads with cash distribution. Witness the divys which should have been bumped up last quarter to placate the markets (to some extent). They see the company as an entity that will be held in the family for as long as oil production is around so they are not concerned with short term share prices. Its a solid company but not really made for public investors.

[bullmrkt89]

I bought 1000 shares of this at 14.45 last month. Really regretting it after reading all this stuff the last few months here. I guess I’m just stuck holding waiting for some sort of a rebound here. Curious as to why you think it’s not for retail public investors. 

[oilandgasmick]

Well, essentially what I am saying is that most public shareholders originally bought this stock because it was conservative and paid a good dividend-- so as an example senior citizens and pension funds liked it because it was fairly low risk and reasonable reward. You don't really buy a company like this because you think its a double. Its really supposed to be a low risk reliable income

[bullmrkt89]

Oilandgasmick, so what do you recommend going forward here. Is it best to just hold it? I mean, 13.25 seems to be a 5 year low. I think would be kinda foolish selling now considering where this was 3 months ago. 

[oilandgasmick]

No way would I sell at these disastrous levels. As someone posted earlier this week,try going out and buying processing capacity of more than 350K bbls per day in today's market. To me, that capacity alone is worth 10+ bucks per share in the market. Canadian energy companies have been hit by the perfect storm but there is light at the end of the tunnel: Notley is finished in 2 weeks Trudeau

[bullmrkt89]

Wow really ehh? I can’t imagine more downside than $13.25. This thing got absolutely leveled recently. Ahhh well, I’ll wake up tomoro and collect my dividend while we wait for better days. Every single time I got nervous and sold a stock at a loss, it always came back and some. This time, I’m not falling for it no wayyyy!! 

[mrbb]

this pipeline debacle could be short term pain for long term gain as it wakes up the indian and opens door for them to join the oil/gas development instead fighting it,  I heard TMX is close to a deal with the indian taking 51%.  LNG is moving along in BC. Saudi want $70 oil.

[jwallingf]

You make some good points mrbb although you realize that Indian refers to someone from India, not someone of native heritage?

[jwallingf]

Agree oilandgasmick. I'd be buying at these bargain prices. Not sure if the changing political landscape will help that much but the oil price trend certainly will. The unwinding of the production cutbacks will lend a hand as will pipeline progress. 

[oilandgasmick]

The macro trends in oil price politics really helps when it comes to the international investor. They couldn't tell you the difference between WTI and WCS, all they know is that if the price of oil is favored by political viewpoints and a stock is undervalued then buy...buy...buy. I am certain that right now most brokers around the World are advising clients to steer clear of Canadian