Twin Butte Energy Ltd TBTEF

RE:S/A chimes in on TBE dividend redeployment

[pm1231]

Considering I'm the author, I should chime in.

To reiterate, i'm not saying management will or will not cut the dividend.  That's up to the board.  What I am saying, is there are a good number of investment opportunities that, if they DO decide to cut the dividend, the capital redeployment should yield very good returns over the long run.  

It is important to understand investors in Twin Butte.  They are for the most part, yield investors - they are not in it for the growth (there are much better companies that provide that).   Management will likely take that into consideration.  Insiders also have a lot to lose with a dividend cut.

For the benefit of short term traders, be careful of today's rally.  The rally was a bit overdue given the daily decline in WTI, but we are far from being out of the "doghouse".  If the Fed announces tomorrow afternoon a more "hawkish tone" on interest rates, we can expect to see another leg down in WTI and subsequently, Canada's energy patch will trade lower.  

For long term investors, enjoy your dividend.

Good luck.