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Parallel Energy Trust T.PLT.DB


Primary Symbol: PEYTF



GREY:PEYTF - Post by User

Comment by petersterncanon Oct 02, 2012 12:15pm
94 Views
Post# 20437960

RE: RE: RE: RE: RE: RE: Four areas of increasing d

RE: RE: RE: RE: RE: RE: Four areas of increasing d

Well I agree that some past success isn't a guarantee of future success.  As for 'bottom failures' ... for myself, when it comes to dividend paying energy stocks, I've had way more success than failure.  Mind you I haven't invested in that many... I'm not running a mutual fund using other people's money to invest.  

But when investing, I always look at the cash flow and what will affect that cash flow.

AAAAND... I DO know of many big yield stocks that had to cut their dividend... like Yellow Media (dying business model) and Canfor Pulp Products (people just don't use as much paper as they used to... resulting in lower pulp prices).   Those were two I looked at and stayed away from because I didn't like what I saw with the business behind what generates the cash flow that enabled the dividend.

So Gwplant, you can now say you DID read about a couple of high yield stocks that had to cut their dividend.  For me, the big yield stocks that had to cut their dividend are NOT out of sight/mind.

Having said that, I don't see the market for NG dying or prices declining.  Same deal with oil and NGLs.

NG prices hit a low of around $2 a while back... since then there has been a steady rise as we approach winter.

I also disagree that examples from 2008 are invalid.  In case you haven't noticed, there's still a credit crisis going on... only it shifted to Europe.   And back then, energy prices took a dive and started to recover shortly after.   It isn't the exact same situation... but it has the same effect of putting a chill through the credit market... which makes many more nervous about smaller companies with debt when you get close to the point that the debt has to be renewed.

 

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