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

RE:RE:RE:RE:Dividend Watch!!!

[mrbb]

show me a post where i pumped or hyped up HSE.

You can't because time and time again i asked for proof and all i hear are crickets

Scottie99 wrote: No, I am not shorting the stock, just stating the obvious based on what I posted about the dividend few quarters back. Some were dreaming that the dividend would be increased and I warned them that the dividend is at risk of being cut or suspended. I gave my reasons that time would tell.

Guess time is telling now and thought an update on the dividend watch is in order!

If I was shorting, I would be buying the stock but for full disclosure, I have not bought and would not buy the stock no matter how much spin or pump mrbb puts on it!
 

wheeloffortune wrote: How much are you shorting this stock by? 

Scottie99 wrote: How times flies from the last post. Time for another update!

The SP is just change shy of $5 and with the oil price about to sink lower, I think it is reasonable to expect that HSE would be below $5 and heading towards $4 when market open on Monday and beyond! The dividend yield is about 10% and would increase as the SP heads south!

How long would it take for them to cut or suspend the dividend again? It is going to be a chicken and egg situation pretty soon. If they don't cut or suspend the dividend, the oil price if it keeps sinking with the open season declared by the Saudis would bring the SP down and the dividend yield increases. Investors would get jittery that a dividend cut or suspension is eminent and would embark on massive sell-off before it happens. If they cut or suspend the dividend immediately, the SP would take a nose dive as investors embark on massive sell-off like what happened in 2016 or worse!

For those thinking they would cut CAPEX to maintain the divvy, you should do your due diligence because the feelers is they are maxed out on CAPEX cut without significant effect on value destruction. Any further cut and production would suffer significantly. If they cancel projects to cut CAPEX, they would have to embark on another layoffs with all the attendant adverse effects. There is no devil's alternative!

Scottie99 wrote: Forgot to bring our attention to the paltry dividend they are paying and the SP heading twoards $5.<br /> <br /> The dividend yield is currently at 5.6% and looks like it would increase as the SP heads towards $5. What do you think would happen? They would cut the dividend to reduce the yield? They would keep the dividend as it is and ignore the abnormal yiled? For those wishing for a dividend increase to prop up the SP, is there any chance they would increase the dividend?<br /> <br /> When I stated that Peabody would have a lot of explaining to do if the SP hits $5, the dividend watch is part of what I was thinking and minority shareholders should too because it can accelerate things pretty quickly!<br /> <br /> It all boils down to the 65% of the mid-stream assets that was illegally stripped to LKS. If the OSC declare the transaction null and void and LKS to pay back the revenue and interest to date less the paltry amount he got it with interest, HSE would be swimming in more cash and the prospect of dividend increase would be much higher. The SP would see a move up and we could be back in double digit in no time. This would be a slap on the LKS face and maybe reduce his hold on the company and Board. So going private is not going to happen. Heads would roll for sure and Peabody&#39;s exit would be certain since he is the CEO and in the middle of the mess.<br /> <br /> So when I said they are worried about the 65% of the mid-stream assets, the above scenario might be brewing behind the scene as the OSC complete their regulatory review and launch an investigation into the special transaction. This is the Hail Mary pass for minority shareholders to stop the bleeding and there is lot of blood on the street for sure with this stock!<br /> <br /> Good luck everyone and watch this space!<br />

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