RE:RE:RE:RE:RE:RE:RE:why do i own this stock I was doing some google-searching on Cardinal this morning and came across this article from a few years ago that I thought worth sharing:
https://www.albertaoilmagazine.com/2014/02/growth-plus-yield-model-juniors/
It features an article with Scott Ratushny that describes his overall strategy for Cardinal at the time it went public. What's interesting to me is that the company has stayed pretty consistent to this original strategy and they've done what they said they were going to do. Over the past four years management has consistently grown the company (going from ~6,000 BOE/d to ~21,000 today) while continuing to pay a regular dividend. The article concludes by listing the five companies that Ratushny previously built and sold at a profit. This same strategic statement appears in every single MD&A and Financial report that the company has published since this time.
So ... Why do I own this stock? Regardless of what the stock price does day-to-day, I am investing in the long-term because:
1. I believe that the company's management will continue to do what they said they were going to do four years ago and will continue to grow production and build the company over time.
2. I believe that they will continue to pay me monthly while they do that. I bought the company's shares because they said they were going to do that and they've followed through. If I want to buy a pure-growth E&P that didn't pay a dividend, there are options to do that on the market.
3. Ultimately, I believe that they will sell the company at a significant profit and I will be rewarded for my patience with a substantial capital gain.
It may take a few years for this to happen, but I"m happy to wait while I collect the regular dividend.