ARC Resources FolliesReally Eric Nuttal only beats the drums of companies that follow his investment Thesis, and management that only serves the short term objectives of the spread sheet jockeys. When companies don't cooperate Nine Points partners throws them to the curb in the blink of an eye. This is what just recently happened with CPG, like they previously did with Athabasca that they eventually bought back and like they have done with Cardinal Resources.
Spreadsheet Jockeys can only model share buybacks, and are not pursuing dividends or special dividends, they don't fit into their spread sheets, they don't have columns for those variables.
Really for spreadsheet jockeys that are running fund (Nine Points) their objectives are much different then a long term investors in a company. They are not concerned about long term resource objectives, growth, sustainability, or a healthy dividend. Their risk profile is high and they want to get maxiums returns, they are always rolling the dice.
So when management follows the lead of they act as Stock Promoters like Eric Nuttal. He clearly states he is not in favor of dividends that reduce your exposer in your investment, he is only looking for a rerating as a product of share buybacks.
Eric however lives in fantasy land, and i have not seen a share buyback result in a rerating to date. In fact i would say the actions of these groups, and their only business objective do not align with the average investor.
Nine Points want investors to double down, limit growth, buy back their shares reducing companies dividend obligations to deny shareholders of meaningful returns with a premise that oil will be higher and they only want to hit home runs. Nine Points and share buybacks are only good to meet their objectives, and management may think they are great for the company because it reduces their obligation to shareholders because there are less of them.
This does nothing for the average investor that want to take the money on the table, be paid, and don't want to play the timing game with commodity cycles. They should get paid handsomely in good times and reasonably in other times.
IMHO