Cardinal Energy Ltd (Alberta) T.CJ

Buybacks

[ReitsRus]

Nice to see CJ buying back 12 million shares in the next 12 Months with the 3.7 million already bought back saves 972k a Month in Divy's. Hopefully Third Quarter we get turned around and get this back up to $9!

[TheWokeLemming]

Here's hoping.  With share price near a 52 week low it's time to take advantage and give support to shareholders.   It's that or increase the divvy.  How low does share price have to be before they actually buyback shares again?  

[JohnnyDoe]

There's absolutely no opportunity to increase the dividend at these prices

[loopsbutterfly]

You are a dreamer...when a buy back is happening the stock dont rise because the broker need a good trading range in order to get the shares. Usually the issuer set the price they want to pay (the minimum and the maximum price)

[Quintessential1]

Buffet disagrees.  The other stocks that I own that are buying back their shares in quantity have not only held their share price but it is rising.   The catch-22 seems to be that when these companies have the cash flow to buy back stock their share price has risen because the commodity they are producing has risen in price.  If these companies truly believe in a higher future

[egee]

Cj , with the amount of shares owned by insiders and  executives, I would put  it in a catagory of being a retirement package of those folks and not a up and comer (Tve/headwater/ and such)

[TheWokeLemming]

"If these companies truly believe in a higher future commodity price then the time to buy back is when commodity prices are low."   Exactly.  It seems like CJ has no actual commitment to the buybacks. While the divvy yield is outstanding the NCIB was barely utilized and seems more like window dressing than an actual commitment to improving shareholder value.  Without

[egee]

Pick one: a/ getting set up to pull the trigger on an acquisition  b/ sitting in the weeds , not interested in anything but status quo

[JohnnyDoe]

They don't have the cashflow to be paying out .06 cents a month AND make good use of the NCIB with oil in the low 70s. In the low 70s, the dividend is safe, but there's no room for anything else. 

[TheWokeLemming]

I will say that most likely you are correct, but I'll believe it when I see it.  Waiting to make more money from higher oil prices just to spend more to buy shares at a higher price isn't exactly a winning strategy either. If they've stretched the FCF that much then perhaps bumping the divvy from a nickel to 6 cents was a mistake?

[JohnnyDoe]

To be honest with you, I thought it was mistake. I own a lot of CJ shares and I'm happy collecting my monthly stipend but according to my yahoo app today it's yielding 10.56% and I somewhat believe it'd be trading higher at 5 cents a month. Still a healthy dividend but less concern about the ability to pay it.  I'm hanging on. I think 70 is a floor price and I believe the

[egee]

I've gone 100% cash until a clearer picture is here. Last go I waited , this time went safely into the night and will bide my time.   Not easy to do, disapline is hard

[Quintessential1]

What they and we need to ask ourselves is, is it worth adding to debt to buy back shares? If servicing the debt costs less then the dividend yield at the time then probably. But that is changing montly and you have to believe that commodity prices will rise. GLTY and all  

[CountryBoy69]

I don't buy that argument , buybacks rarely if ever result in a SP increase, MGMT bonuses perhaps , but to for shareholders who invested in this company. The dividend is more than satisfactory so l would prefer to see , an addition to their land holdings with good drilling opportunities since the current assets are aging or continued debt repayment.I don't know what interest rates they

[Quintessential1]

"Warren Buffett defended stock buybacks in Berkshire Hathaway ’s annual letter, pushing back on those railing against the practice he believes to be beneficial to all shareholders. “When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued