Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

Review of RISKS to PREFERREDS.... Basically 3 Risks

[RagingBull3]

1.  HSE goes Bankrupt :  Questionable what the Preferreds will get but I think this situation highly unlikely.   

2. HSE goes Private:  This situation Preferreds will get $25/share, again highly unlikely.

3. Interest Rates Goes Negative:   This will cause rates for Preferreds to drop and amount of dividend paid to decrease.   Given what the BoC indicated many times, this is NOT GOING to happen.  But also they indicated that they are willing to hold rates near zero for extended period of time.   I'm betting rates will head higher, much higher..... but if they don't, these Preferred are already yielding high rates.

All 3 risks are highly unlikely, IMHO.   

Risk #2 infact not a risk, getting one time payout of $25 fine by me, I just have to use that money to go find another dividend paying stock.

Very low risk for such high yields !!!

Again, all just my opinion.   Do your own DD.

[Frederic]

Great ! I also purchased over  100 k worth of various HSE preferreds in late March / April and holding for long term  Yes they are great yields but seriously you guys are getting really really boring. we all get it . Can we move on ?  

[cvk_explores]

With most of the world capital moving away from fossil fuel's and into renewables. Will we see this moving much over $6 -$7 in the future? I'm concerned how this will affect long term share price.

[RagingBull3]

Preferreds are basically debt.  As long as HSE does not go bankrupt it's dividend is not determined by company performance, it's determined by interest rates mostly. So, like I said, I believe the risks to the Preferreds are: Bankruptcy, Going Private, Interest Rates. Would getting ~8% yield forever sound good to you?  If yes, then ask yourself the RISK related to those 3 areas

[RagingBull3]

Eventually, one way or another this Sector MUST,  that is MUST become PROFITABLE....because renewables will not, can not supply the energy needs of the world any time in the near future. The world economies are asking for BIG BIG TROUBLE if oil sector continues to contract. Just all my opinion.

[RagingBull3]

Call it "advertising", "pumping", "getting the word out".....    Not only it helps other investors but it also helps yourself. Activively thinking "out loud" actually helps me see things more clearly. Plus, I'm hoping for other views.....  for or against the preferreds.    I like to know if I'm missing something. 

[RagingBull3]

What brought you to HSE prefrerreds back in March/April???......... Some Poster???  If so, then you should THANK THEM, and understand the VALUE of these Chat Boards.    Probably someone brought these Preferreds to your attention.  

[Frederic]

Yes , thank you as I am grateful !  ! But enough of the gloating Over returns and the selfish talk  .you all know who I mean  Nicer  to see us talking about fundamentals instead of how much $$ and yield everyone is making .

[RagingBull3]

Yield is Fundamentals!   Risk/Reward is Fundamentals!   If $$$ is not Fundamentals, then I don't know what is.

[RagingBull3]

You must be talking about yourself.   First post you make in a long time is to say how you bought 100K back in March/April.    You add nothing to the board, but only to mention this and bash.   No fundamentals coming from you.    Ironic how you don't like to hear yet it's the reason why you are "thank you as I am grateful".