Cardinal Energy Ltd (Alberta) T.CJ

Passing through $5…

[JayBanks]

Let's see if we hold the day above $5, if we do the margin rate will the 70% going forward...

Seems like most of the major players are boosting thier dividend rates or starting/restarting them, Hopefully CJ management makes a good announcement.

I've seen a few posters want further debt reduction rather than the div, I think a combo of the 2 is the best way forward, start the dividend at a rate that makes sense and further leg down that debt.

For the most part corporate debt isn't usual too expensive unless there are buisness issues, if I'm fine paying 5-6% interest and the use of those funds will get 10-15% growth it makes sense. As long  as the cost of borrowings make sense I don't care much to be debt free, if the debt stays in a comfortable area I'd be up for making more acquisitions at anytime, we just don't want to leverage ourselves back into trouble as mentioned before.

I was waiting to see the earnings news all morning, guess it's after the bell... I wanted my Bacon and Eggs to taste even more amazing while reading I'm getting paid again from Cardinal lol

[SchoolNmoe42]

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[caretired1]

CJ will announce a dividend with earnings tonight, I expect. You can bet Nuttall has been making strong suggestions to them recently. He will be a booster for oil stocks tomorrow

[geezer21]

When you can reduce debt that is costing you 6 to 9 % it is silly to want a dividend paying 1 to 3 %. 

[JayBanks]

While that is true, I think the dividend rate will be higher than that. Let' s say it closes at $5.00 (Divs are shown per month) .01 = 2.4% .015 = 3.6% .02 = 4.8% .025 = 6% .03 = 7.2% .035 = 8.4% .04 = 9.6% I think that if announce we would see 2-3 cents/month 6-9 quarterly. I would be fine with getting paid 4.8% over the year along with the bump in share price that will likely come from the

[Re1ndeer2]

Agree with most of what you say except the debt repayment schedule......Debt target should be 6 quarters......

[JayBanks]

Admittedly the debt repayment schedule, and FCF #s are hard to predict and not very exact on my side, I think I went to the lower side of FCF from a Seeking Alpha article based on that person's numbers on $70...  Using the numbers I showed the Debt would be paid off in 4.56 quarters, but I really don't think that is realistic as the company will not use all the FCF after the div I