RE:RE:Food for thought.. Hi Pierre I must apologize! This is an outstanding post from you. Great job plucking facts ! You llatterly posted this as I clicked the reply button as well .
So I will just say " what Pierre said " Good stuff
You know one nice thing for those CPG holders today was the volume was way lower today than the last few , so it went up on low volume . To me this can mean those
who are holding are happy , and those who want to own have to drive the price or they aren't getting in !
I beleive Whitecap is a whole notch better than CPG , and I would consider switching at least some of my CPG for Whitecap , this is temporary in my opinion , and if you can buy more shares of WCP using shares of CPG aside from capital gains issues , today was the day to switch .
Just remember capital gains tax at this point isn't paid until next yesr , so you won't loose your earming power because you have a capital gain for while , but also door forget the tax man wants his due , and I don't think things will go bad Just don't forget to hold in your brain 26.5 % for the tax . Unless it's RRSP - or TFSA
Anyway. Good stuff all.
C
pierrelebel wrote:
moemoney42 - Generally, investors use "cash flow" or "free cash flow" not earnings or P/E when comparing different oil companies
Using P/E could be very deceiving and lead to the wrong conclusions.
While CPG is a fine company, you need to understand what the P/E is based on: earnings.. Look carefully at earnings for the first quarter.
From CPG
"Crescent Point reported net income of approximately $1.2 billion for first quarter 2022, primarily driven by a $1.5 billion ($1.2 billion after-tax) reversal of non-cash impairment resulting from an increase in forward commodity prices and the independent engineers' price forecast. Adjusted net earnings from operations during first quarter was $240.9 million."
In my opinion, based in current prices, free cash flow, dividend, debt, etc..., WCP is a much better long term investment than CPG.