RE:bit of a tough week hereIt's all relative. I wouldn't say they are killing it with cash flow relative to other names at this price. We are a couple of weeks away from booking the first quarter at a very high oil price which will give other names much more cash flow/market cap than WCP.
WCP was a good name to ride during the uncertain recovery and it was the darling to be sure. But now the easy money has been made. At high prices with the prospect of much higher prices, there are much better options out there that will give more torque to the rising price of oil or even rangebound oil prices from here.
That's what is going on. Funds and traders are rotating from stable, overpriced names to levered underpriced names to capture the run on those.
uograd wrote: First trade on monday morning was 6.82 and now 6.19
my spider senses tell me that some funds were a little overweighted in wcp stock after the torc acquistion so are lightening their load to get down to the per cent of ownership they are comfortable with.
I myself dumped a good chunk in the last couple of weeks at higher prices. Normally I would buy back but seeing how it is a friday I think I will just keep my powder dry until monday and see how things look then
dividend of 2.76 at current prices is not a great incentive either.
flip side is whitecap is killing their budgeted cash flow and earnings so that is never bad.