Whitecap I think if this was any other sector with these metrics we would see a stock price much higher than today. Much much higher .
Lately I have been reading the bullboard , listening , and reading all the usual material and I found myself saying don't listen to the noise , look at the facts.
1) financial strength (balance sheet) - Good
2) making money( income statement ) - Good
3) upside - ( dividend will be increased ) Good
4) integration - realizing synergies will begin to hit in the coming quarters - becoming more profitable per BOE
5) Carbon capture - best in class and this could become a revenue steam of importance
So after some wins and some good but kickings in the market over the past 20 plus years !
Listening to the analysis , such as Eric Nutall pumping the stocks he likes , and why he likes them , I realize it's in his best interest to see these picks do well , like all of you I have skeptiskm , but we also know he is only passing on facts , and he is dead right about whitecap , and the oil market when he speaks of the metrics . Royal Bank is one of the many banks to review Whitecap , and what caught my eye there , was they built a dividend increase into there analysis. I might be wrong but my memory is saying a 15 % increase .
I just feel the the noise in the market is just noise ....... normally . The facts are whitecap in any other sector would be a 12 dollar stock right now , at least ! What gives me a solid dose of reality is the NOISE globally about Oil , and the largest funds , and banks all are all talking a big game about climate change , and Carbons . This actually throws cold water on my optimism . It keeps me seated , and what I come up with is this .......
It the big money comes does come back it will be
to company's that are the least damaging to the environment , and Whitecap I believe is one of the only
company's to be carbon neutral , and they are applying to double there capacity. ( revenue stream ??)
So lots of noise or no noise I just keep coming back to the dividend. So we CANT count on market sentient , and the noise being in our favour. So what I see as the best bet for the price of whitecaps shares to increase is the raising of the dividend . They are strong financially, they are a green oil name (if that can be a thing !! ) and they have much uspside in the integration of the company's they purchased.
So Aside from market sentient I feel income investors will quietly , very slowly move into this name , and the share price will increase in coralation to the future dividend increases . What the share price does , unfortunately I have no idea , but when I take out the noise , I think we have some near term upside , mostly due to the pull back a couple of months ago
(summer - profit taking possibly ) then I would think with the balance sheet , improved metrics through the consolidation of the aquisitions , as well as one or more dividend increases over the next 12 months , and there carbon capture program we may see some strength in the share price .
Just my thoughts , and I do own this name , it's my largest holding in this sector So there you have it !!
Craig