RE:RE:RE:After waiting for over a yearYasch22 wrote: That's fantastic, Houbahop. Your yield is 94.3%.
I'd find it very hard to ever trade out of a position like that.
First off, congrats Houbahop on the substantial paper gain, and hence, lofty dividend yield you're collecting, though isn't the whole point of investing (which also applies to the companies we invest in) to make your marginal dollar do the most work for you (within your risk tolerance)? There's obviously tax implications of disposing any of your position, but the liquidation value of your portfolio (including distributions) at the end of the any given time period should be the priority, no? You did very well when you took a risk back in 2020, but now you're potentially taking the risk, passively, by forgoing better returns in not locking in some of those substantial paper gains and moving that windfall to another investment. Don't get me wrong in suggesting that your risk tolerance would necessary allow you to get a better return than what PEY is offering you, but we really ought to evaluate the merits of our holdings on a regular basis, and a dividend yield based on buying in at a very depressed valuation shouldn't get in the way of such evaluation. Clearly there are examples of people getting triple or even quadraple-digit percentage dividend yields by buying into companies early, and holding, but if they had the hindsight, I'm sure many of them would have capitalized their gains and moved their money elsewhere, laterally or lower on the risk spectrum. Last point, after a long-winded, and unsolicited response to your post, is a question(s): Does Peyto treat your money as you (do or ought to) treat your money?? WIll they act as "nimble" as they claim to be or will their stubborness to grow production and base dividends get in the way in what currently appears to be a market where debt reduction seems to be a more productive use of capital, such that they would have the optionality to add leverage down the road to expand, in whatever capacity?
As a disclosure, I currently own 8000 shares of PEY. I'm also using a short strangle option strategy, essentially. I've sold $12 call options on half of my position, and also sold $10 put options that would double my position.