RE:RE:RE:Would "Cardboard. Interested in your opinion TOG or CJ the Nut said TOG I agree with him about management. Whats your take?"
I actually sold a good chunk of my CJ the morning of the dividend cut announcement since the price stayed stable to even up instead of going down and bought more WCP and TOG.
This was more of a call on price direction vs value. I suspected that CJ would see selling pressure with a dividend yield now lower than WCP and TOG.
I bought back the CJ that I had sold on Friday last week. So I have actually now deployed even more capital into Canadian energy.
On Nuttall's comment on CJ, he said that it now trades at similar price as a TOG and has better netbacks, management, lower debt, etc. If true, then yes it would make sense to switch. However, you have to factor in a lower decline rate at CJ. Using FCF, I think that they are both equally priced. On per flowing, CJ is cheaper but, its operating costs are much higher. My guess is that CJ has a bit more upside than TOG but, more risk since its breakeven cost is higher.
One should own both IMO at this juncture. All these stocks have been thrown away including off course WCP.
Problem that we have right now is the Americans killing any attempt for oil to rally. It was up all night then this morning they took it down again. Happens almost everyday. You can also see that Brent does not drop as much as WTI. It is down 3 times as much in percentage right now.
We need to see more evidence that U.S. frackers are slowing down production to take the punch bowl away from U.S. traders/manipulators. EIA last week showed a 100,000 bls/d decline which can't have been easy for them or a cheerleader of U.S. oil production and at same time I would say downer on oil price to help the U.S. economy.
I really don't understand what is the whining all about in the U.S. with gasoline selling for a national average of $2.37/gallon or very affordable vs everything else and cheaper than it was all year and cheaper than last 10 years while income keeps on going up...
Cardboard