Perspective Good morning!
i have been reading the posts lately on this board and seems to me that many investors perspective is very screwed. People upset that they are not seeing gains in the stock price in days/weeks/months. Fair enough, we all want instant gains, but if you bought SGY to make a quick buck on a trade, seriously you simple chose the wrong company. Why would you trade a company that pays a 7.5% DIV? All good that you did, just your expectations are misplaced.
How i I view my SGY holdings. To me they are a high interest, low tax savings account. Where else can you get 7.5% return at a lower avg tax rate? Change your perspective and you will love this company, like I do. It makes a payment to my RESP’s as TFSA every month, and truest there is not much downside possible from this point. Simply watch the 7.5% compound as you put the money back into the company.
Oil Prixe update, to end the week SGY is getting on Avg $ 71.07 Canadian dollars per barrel. In simple terms it means SGY is making money. If the price of oil even just stays where it is for a few more months and shows some consistence you will see a DIV increase.
Q1 results will be very good when they come out, this year will see a new provincial and federal government which is much more supportive towards the industry. Line 3, while delayed appears to have some positive momentum. Line 5 delayed, which truest has no impact given the time frame on the project and the old lines are still flowing. Trans Mountain and XL both got positive news this week in my opinion.
So in short sit sit tight and collect your DIV. If you need your principal and are looking to make a quick buck, poor choice on your part.
Good luck to all the longs!
Have a great weeken!
Kid