Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

RE:RE:RE:RE:RE:RE:All the metrics for valuation out the door

[pablo87]

First of all, is the dividend safe? Probably not based on the past, Peabody's multiple statement that the BoD decides, the BoD not being representative of 30% shareholders who probably only care for dividend, and the 70% owner not caring about it at all because they don't need it. This is why RBC said take it private LKS - because they more than anyone know that LKS group objective and that of the 30% shareholders are incompatible (keep in mind LKS has 25+ year relationship with RBC; they know the group well). Contrast to TOU Mike Rose CEO said dividend it's guaranteed. And then layer that with what Cramer said - that like tobacco, fossil fuels are dead which reflects the view of many. That dividend yield and shareholder return is the only reason to stay (these 2 statements are likely to be true see what Shell is doing high yield 7%, buyback, and significant green energy capex). They've also not explained their cashflow use well. They are spending a lot offshore West White Rose which is 100% equity funded. Without it, they'd have 4x? the cashflow of the dividend. Surely they could increase the dividend but they dont - not increasing when you can, cutting it when you have to reflects the priorities of LKS: the dividend is the last priority which of course is the wrong answer when it's the only reason investors are buying your shares. So here we are.