Nutbar's take on CJ on BNNI have listened to Eric's comments on Cardinal a few times today and it simply does not make any sense!
Here is the basic transcript from StockChase:
Outspending free cashflow, using debt to finance dividend, not his preference. Gets concerning if oil price drops. Not sustainable for the next year and a half. In 2026, the cadence of capex reduces and the dividend becomes sustainable. Yield is 10.1%.
Look elsewhere. You may sacrifice 2% on the dividend, but you're getting one that's much more sustainable.
So tell me, knowing Nutall's investment record and what he has done in the past and what he is doing today, why would Cardinal not be a screaming buy at today's prices? We all know what CJ is spending their capital on Reford, which will be a home run in only 18 months!
Kherson