RE:Every company is buying back but Cardinal OOU812 wrote: There are quite a few companies in the oil patch buying back shares.
They include PEY,SGY,ECA,GTE,ERF,TVE,PSK,WCP,SES,CNQ,
IMO,SU,TOT,TCW,SHLE,VII,BIR,POU,CPG,PPR and RZE.
Hard to believe that managements from winners like PPR and RZE
are more on the ball than Cardinal's.Extremely disappointing.
Some companies on the list like TVE and TCW started buying back shares when
their share price was double what it is today.They believed that their shares were
good value and worth while buying back.If they were good value, they're definitely
terrific value today.
When it comes to value I would have a tough time finding any company on the list that
is a better value than Cardinal.
For 2019 Cardinal is expected to generate a higher percentage of free cash flow
than almost any other Canadian oil company.According to CIBC's estimate,Cardinal will
generate a 24% free cash flow yield based on market cap for 2019 (strip prices).
That number is almost double the next highest one, Bonterra at 14%.
Given a decent oil price Cardinal generates some of the best free cash flows yields in the business.Most investors would consider such a company undervalued.Why don't the people running Cardinal?