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

RE:RE:Yields alone would make it CRAZY to short the Preferreds

[rad10]

Shazam57 wrote: I'm a total newbie in this arena. How do the numbers add up to being close to a potential $25?

 

They don't Shazam.  The preferreds were trading at ridiculously low levels with double digit yields for several months.  The redemption at a par value of $25 is wishful thinking.

if the preferred vote fails - there may be an incentive for the combined entity to do an issuer bid for the outstanding Husky preferreds.  The inconvenience of a separate listing may outweigh the cost of an SIB or NCIB.

Either way, anyone scooping up distressed HSE preferreds over the last 6 months has done really well.

I voted no, because maintaining the Husky listing maintains that slim chance of potential further upside.

cheers