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

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

[firstworld]

LKS thinks in 20+ year time-frames while 85% of Canadians are $200 away from bankruptcy. He was expanding outside of HK aggressively since early 1990s...mistakes are made and HSE is probably one of them in hindsight. Price is low because Canadians are focused on next month and quarter. NOT strategic at all which is why we produce the same stuff we did a century ago and cannot compete globally with intellect or value add products. No oil, grain or ridiculous credit leverage for consumers and it's 4th world over night. No linguistic capabilities so very limited global opportunity and have to compete with a billion other people who have PhD and 6 languages lol.... Glad I sold at high 13 in late spring simply because I wanted the money for something else and felt the negative China bashing sentiment that's bordering on extreme racism would hurt it. Talk like that about news and it's criminal charges for hate speech LOL. The price is ridiculously low. On the other hand I learned they have an exceptional kitchen at Corp HQ with a Hys chef recently going there.

newcoin wrote: I agree with you and have averaged down now to $9.16/share. I get a great dividend and I'm in near the bottom of a stock that will show how undervalued it is very soon. I feel safe.

oilandgasmick wrote: Actually, if you look at the metrics today they are as good/better than what HSE had in 2014 when it was trading at 36 bucks a share. Debt ratio is not of concern but it was becoming issue when the stock price was much higher.

As for production growth, I don't believe that's the issue.

Thermal projects in Western Canada will add another 50K bbls. a day over the next few years so production growth its taken care of but the real problem is that most analysts are suggesting that there will be no free cash flow over the next 24 months so what is the hurry to buy? 

Those short sighted statements are enough to send many investors to other places--basically named SU and CNQ even though they are trading at much higher price/earnings ratios and much better value relative to book.

The market is also leery of the decision in 2016 to suspend dividends in their entirety. It may ultimately have been financially prudent to do so but in terms of PR it was a disaster and pension funds promptly dropped the stock. In many cases they had to because their rules prohibit owning common stocks that don't pay a dividend.

This is where HSE constantly falls down--it's not reality but rather perception.

Tales of no market access are another myth. The company has had relatively few problems getting their product to market and they have excess refining capacity which allows them to buy/upgrade/sell along a production corridor that many other companies would only dream of.

Then of course there are all these conspiracy kooks with tales of Chinese government spies and massive fraud, money laundering etc. Of course, its complete nonsense but there are people who believe this "Illuminati" garbage. In contrast, Su, CVE and CNQ have no international connections that would solicit any good spy novels.

Add it all up and you see why the price is so depressed.