TC Energy Corp T.TRP

2 for 1?...... Good or bad?

[mrmomo]

Just a follow up to my last post and some notes regarding this latest development. I see the company splitting in two divisions as good news and will help the stock mitigate some of the bleeding, possibly setting a bottom until all the details of this split are fleshed out & absorbed by the market. This won't change the fact the the company is still heavily indebted and could be facing some liquidity issues, but this is the type of pro-active (that i was talking about!!) move that will help the company fix its balance sheet. A little too late imho, BUT still better than doing notihng at all waiting for the problems to get much worse.

With regards to this potential "split" of the company in two and what it accomplishes. First off, i hope folks understand that this wasn't something that mgmt just magically conjured up overnight to get themselves out of a jam or for fan service. This type of transformation is something that was probably in the works for sometime, going back as far as late last year. So they were thinking about greenlighting this move for quite some time. The problem was the actual implementation not the idea. I find it was just way too late, waiting for the problems to get completely out of hand before being forced to publicly release this "tranformation" to help stem the slide in the stock price & save the company's rep. My guess is that this was released way early before it was completely ready & much earlier than what they wanted.

So is this a god move for s/h? Personally i don't care either way as i'm not one, but those that are, i say YES, in the long term it's a good move to reboot TRP save the company from extinction. Splitting the company in two, the gas pipelines in one & everything else in the other, was the right thing to do (lnger term & for s/h) and probably the only thing aside from more "fire sale" divestitures. I'm also guessing there was a "little" motivation to appease the ESG crowd & powerful folks like Blackrock on the initial outset of this idea, so they can get onboard with TRP. Something that Canadian corporation linked to anything fossil fuels are in desperate need of, major exposure & BIG institutional money.

But like i mentioned, this does not remedy the under pinning issues in the short term, which is their debt & liquidity problems. In the longer term it most likely will, but not without some MAJOR cost to the company & holders. Meaning TRP will most probably ditch/sell off one or the other in the next 36 months, and basically focus just on one segement of the energy sector. And i'll let you folks GUESS which one that will be. As for the market reaction to this, i'm fully confident that the market & investors will react very positvely to this news and the stock might recoup some of the steep losses it has suffered recently. like i said, it will probably set a temporary bottom for the stock and give it & discouraged s/h some reprieve.

Am i a buyer on this news? No, definitely not. As the undrelining issues are still very present and TRP is just too heavily indebted for my tastes, and besides there are much better opportunities elsewhere. Would i rec'd this for investors? Now.....No. After the split is consumated and we know ALL the little details.......maybe. Imo, the only ones that should play with this now are day/swing traders, everyone else should stay away for the immediate future to see how this pans out & the volatility & uncertainty is reduced as it settles.

That's the MoMoMyster's take......and wish everyone good luck, whether you're a s/h or not!

[YupnDump]

this dog will be mutating to two mutts..ARF ARF