RE:RE:RE:RE:CARDINAL ENERGY LTD (CJ:CT)3.18 0.08 (2.58%)Remember with the Free Cash Flow they are earning they are paying down major debt which is something I think Kavern here points out quite often. The lower the dept is the higher our shares can go as lower leverage is very accretive to price.
Eric Nuttal likes to point out that we could be debt free sometime in the next year or so and could take itself wholely private (not likely to happen) within a couple years after that.
I don't think not having a dividend or not buying back shares would cause a dip to the shares unless FCF goes downward, and if they started doing major buybacks I would become concerned about them taking themselves private. Any dip right now is tied to the oil price mostly and several times lately the oil has had a down day and the share price rose. Also a few times decoupling has happened after a day of high run up and the following day or two we go back a step back regardless of oil movement.
I would just think that for them to reinstate the dividend they would like to do so when we have low leverage of debt and are confident we can sustain oil prices. Keep in mind when they were last paying a dividend US Shale was online and everyone was producing at close to full capacity, the numbers are currently very positive and many are predicting oil to hold and rise in price to the 70s, but shale is not going and to the best of my knowledge most companies are well below potential capacity in North America and around the World and everyone really wants to open up production but they are doing a very good job of holding back thus far.
I'm VERY thirsty for that dividend, that's why I bought in and I'm not at all pleased I'm not getting paid out especially when the company outlook is this positive. But I understand thier side of it and when I am receiving a dividend I would like little danger from the forces of Evil that would cause it to lower or be eliminated again.