RE:RE:RE:The Eric Nuttall BounceJohnny41 wrote: There is nearly zero comparison between Suncor and CPG, so get over the fact that SU has held up better. Its a massive integrated and far more complex company that CPG will ever be. How many gas stations and refineries does CPG own? None. They are going to trade entirely different, but when oil recovers and SU goes up $2 and CPG double you wont be complaining then will you???
Johnny, that is exactly the point I am making......I think people got a little carried away with the dividend CPG was offering given that they are only an E&P company who were issuing new shares like crazy and are much more vulnerable to oil price changes than a big integrated company like SU.....if people bought CPG instead of SU over the past couple of years, the CPG shareholders are likely down a LOT more than SU owners, and as long as oil prices stay in the $40 - $60 range, I don't think CPG will recover enough to catch those who simply invested in SU....and $50 - $60 oil may be around for a long time as CPG's hedges come off unless there's some extraordinary event such as oil supply being choked off in the Middle East by war, for example.......I have a hunch it's not going to be pretty going forward for CPG as they have to renew their hedges at significantly lower prices than the mid-to-high 80s they currently enjoy on a portion of their production........remember, it's total return (dividend plus capital gain/loss) that counts, and I suspect many CPG shareholders on this board have a lot of catching up to do to get back on par with SU shareholders.....