RE:RE:Conocos shares...Well I think there are pretty simple answers to these questions:
Why is COP selling?
- COP indicated their stategy from the start was to leave the Canadian energy space.
- They indicated right away that they would be selling their stake.
- Regardless of how well CVE does, COP believes it is better to double down on their own bisuness.
- Anyone who agrees can just buy COP instead (and it's a great company so could do well).
Why is CVE not doing buyback?
- CVE still has a huge debt and believes it makes more sense to allocate funds to reduce that debt.
- Overall this probably makes a lot more sense than buying back (especially after already buying Husky).
RagingBull3 wrote: I refer you to what the company did to the Preferreds. If CVE such a great investment then you should ask why COP selling and why CVE have not indicated that they would buyback???
All just my opinion/view/thinking.
Wynjoe wrote:
Cenovus is planning on paying down billions in debt going forward.With higher oil prices this should be easily attainable.Why not make a deal now with Conoco to purchase all thier outstanding shares for some agreed upon price,(say $11.50),for arguments sake.Conoco would do better now,however Cenovus going forward,(if they believe in thier own company,would reap the rewards later.Cenovus,could also resell these shares to institutional funding if and when interest peaks.This might also be done now in combination with existing fund holders.This could be like a huge buyback of shares, but not having to be approved by the sec.Please like if you agree the idea could work,or please feel free to thrash this idea.STRONGER BUY TODAY THEN WHEN WE WERE AT $3.00!!!!!!