RE:What is the point?Agreed - seems all the resource companies and service companies are saying it (NCIB). It's what the market in theory wants to hear....although no one is really getting any credit for it even if they are doing it.
Look at Encana, they're conducing a SIB (Substantial Issue Bid) but are too near their 52 week low.
Good earnings came out of Suncor and Cenovus the other day, and the market hammered them. NONE OF THIS MAKES ANY SENSE.
Important to note that CEU might be buying. If memory serves, before earnings last quarter, they filed all their transactions near the end of the month vs. filing commensurate with buying activity.
Regardless, I've been barfing in my mouth all morning watching it go down then seeing it hit $2.00. All the while, again, with oil being up on the day.
Opinion: maybe CEU should delist on the TSX and instead be listed on the NYSE. Maybe they'd have more luck and be more viable for a corporate sale that way and actually be able to make their shareholders a little bit of money. Their vast majority of income now, and for the foreseeable future, comes and will come from the US. My understanding is that one of their main clients is EOG, which is fantastic. To best serve them and gain market share in the US, in my opinion, all their effort should be directed to the US. Sad state of affairs for Canada and our 'leadership' with their deleterious policy in the east. Breaking even at this time (for me) would be a spectacular proposition.
I will reiterate: this is a company that is 'valued' at $539MM, yet made $1.3B in revenue last year. Yes that is gross income, margins are not what they used to be but they're getting better (like with all companies), etc. They are profitable and employ hundreds and hundreds of people through their entire supply chain with high wages to allow them to support themselves and their families. The company makes twice in a year than the company apparently is worth? Riddle me that one.........no one can because it doesn't make sense.
I laugh when I look at the top performers this year of the S&P500. Tech companies, Under Armour, Trip Advisor, to name a few. Are people that blind to the fact that, including the Wall Street / Bay Street / Analysts out there, that even these companies are only around because of energy????????????
I'm losing my mind. Rant over.