RE:RE:RE:Share price stopped dropping when HSE stopped payingHey Pablo87, I don't think Suncor cut the dividend. Husky hasn't cut either.
Speaking of Dividends, was it you that were interested in the Preferred Shares also?
I'm trying to understand them and how they trade....... can you correct me if my thinking is wrong?
This is my understanding:
They are cummulative redeemable preferred shares, so basically their dividend is almost certain. Even if HSE halts paying for a while, they "cummulate" and all past missed dividend payments need to be paid before the common shareholders are paid.
Dividend is based on 2 parts, a fixed rate plus 5 year bond rate.... times $25.
They can be redeemed at $25.
I think there also the shares will be redeemed at $25 in certain events, like company going private or being taken over.
In an event of bankruptcy, Preferreds have higher priority. Given book is probably around $16, and there's over Billion common shares vs small amount of Preferred Shares, pretty safe to say that redeemed/residue value of a Preferred most likely $25.
Given all that.... They seem to be pretty much like a bond.
Yet, they seem to trade like a stock, corrolated to the commons and interest rates. To the interest rates I understand, but to the commons..... it doesn't make sense???
What are your thoughts?
pablo87 wrote: Suncor just gave an update tonight. They had a lot to say. They did not guarantee the dividend - maybe they never do but that is whats on every investors mind right now. Demand falling off a cliff like this has not been experienced before has it? Basically doesn't matter how integrated you are, you are !?#$ if there is no demand.