Whitecap Resources Inc T.WCP

Cole Snead is a true investor ..

[Frank007]

We up here in the great white north are such short thinkers ...he is absolutely correct ...if you money can return you 20...30% ....by aquiring assets on the cheap ...why would you pay down you 8..5% debt ..tharpts just stupid investing ...

[filefish]

Disagree. Smead is modeling his philosophy after Strathcona, one of his larger investments. The result is a company that looks like the old Conglomerates of the 1970's which got bigger fast but eventually failed to consolidate their operations.. By leveraging further , any  downdraft in price of oil and gas and/or uptick in interest rates might result in being overwhelmed by debt. However

[barneyj44]

Cole Smead is running his fund out of the U.S so dividend paying stocks don't have the same tax advantages as they do in Canada. I'm happy to collect the dividends for the time being in my Rrsp and use the Drip to reinvest in shares. Sure when I take money out I'm taxed but am in a lower tax bracket so not to bad. Every investor is different.