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

RE:RE:Likes the Preferreds

[RagingBull3]

RagingBull3 wrote: Preferreds are a WIN basically any way you look at them.   Crazy Shorts, Shorting the "C" trying to play the arbitrage between the Preferreds are going to get burned.  

I still think Preferreds are entitled to $25/share.   Not sure why virtually no one else think so.  Nobody reads the Prospectus?   My English is very poor, but even I can understand the Terms written in plain English.  

There's basically on 3 risks to the Preferreds:

1) Bankruptcy:  This situation it's unknown how much if any Preferreds would get, but Currently significant Equity is Backstopping them.  Now Cenovus Equity will be added.

2) Bank of Canada/Bond Yields:   This could be either a Risk or a Benefit.  We are sitting at "Effective Lower Bound" on rates.   If they go up, it's a Benefit to the Preferreds.  But if they go Negative, that's a risk that lowers the rates on the Preferreds.

3) Redemption:   If this happens, Preferreds are Cashed out and no longer get paid dividends. Since prices are significantly below redemption value, this situation is a HUGE WIN for the Preferreds who bought recently.  

That's it... That's basically the risks of holding the Preferreds for the dividend.

If you're just in it for the short term, a trader, not an investor for the dividend, then there's the Market (emotional) Risk of share price fluctuation. 

zalmonella wrote:
Interesting writer likes the preferreds, particularly the A series, but for different reasons than I do.  Nonetheless, he sees am 8% yield after reset next March which is where my thinking leads me too.  Only difference is I stick my neck out and say that means a market price of $12.  So I'm in

https://seekingalpha.com/article/4382065-husky-preferred-shares-offer-attractive-yield-upside-from-merger?utm_medium=email&utm_source=seeking_alpha&mail_subject=energy-transfer-drops-the-dividend-bombshell&utm_campaign=nl-investing-income&utm_content=link-18

The merger diverisifies the business  a bit more and adds more equity to the entity, so what's not to like?

All just my opinion.....  Am I missing anything???