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

RE: Are they dumb?

[konzelmann]

Financing is always done at a discount to the average share price in order to help the rich get richer.

However, often there's a temporary drop in the market down to the same general price (or a bit lower) than the placement price.

The market is giving you a 50 cent gift here if you buy today, and then there's potential upside from there.  I see this quickly bouncing back to $27 unless the market goes into a horrible spiral again. 

It wouldn't have dropped to $26.49 if the TSX wasn't bleeding red today with oil at $91 or whatever.  Only reason we got this gift is because the timing was horrible (or excellent, depending on if you're a buyer or if you're a holder)

Last time Husky issues shares, at $24.50, it was a huge gift.  Up substantially from there, plus collecting the dividend.  Money in the bank.  In a few months you'll look back at this day probably and wish you bought a ton at $26.49.  Admittedly the market is always twitchy and that's why I'm not betting my house on Husky, but you could probably get away with it if you were feeling lucky.