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

Getting Ready to Buy more Preferreds... ~10% Yields !!!

[RagingBull3]

Virtually Guarrenteed!

[indoubtgetout]

No freak'n guarantee on any preferreds - just because you own them,  you want others to join into the same ship with you.  I decided to sell my preferreds as they will go down if HSE goes private - NOT UP!!   The common is a much better play on HSE than the preferred shares and it is on sale today for some unkonw reason.   SO TO THE HSE BULLBOARD CROWD OUT THERE

[RagingBull3]

And THERE IT IS..... YOU SOLD so now you are BASHING.   What a Troll.

[RagingBull3]

While I think what you are saying is not correct, you made the right move in Selling.   Up Trend in the Preferreds looks like it's broken.   

[indoubtgetout]

HSE preferred shares are very illiquid so hard to determine any trend.  I have been switching to the common from the preferreds because of liquidity concerns and upside.   I just think that if you want ot invest in HSE, the common is the best way as it is more liquid and volatile.   I am frustrated by the how poorly HSE has been managed and Li and Victor seem to be ok with

[RagingBull3]

I think Husky been doing ok over the years.    Had some bad luck, oil spills and refinery explosion, but that independent of how it's been doing over all.       HSE has one of the BEST Balance Sheets in the Sector.    That doesn't happen by itself.    Share Price is a Different Story.    HSE didn't over leverage itself

[RagingBull3]

Agree with you partially.   Yes, very illiquid and upside limited to upside of interest rates and $25.   Interest rates looks like they are not going up for at least 3-5 years. Commons, hugely Volatile and very liquid.... as such can make a lot of $$$$ if you are a good trader. Preferreds, it's easy.  Just buy and you get 10% Yield!    No worries if reason

[indoubtgetout]

NO, the preferreds do not yield 10% but certainly high yields none the less.   All of these preferred shares are "resets" and are based either on the yield of 5 year Govt of Canada 5 year bonds or Govt of Canada T-bills (if floating) plus their reset rate.   So, if interest rates stay low or go lower, so will these yields.   The dividend rate is based on the

[RagingBull3]

Your posts are what you call MISSLEADING TRUTHS .     Rates you are posting are NOT what they are Yielding now.    You are forcasting out upto 5 years, when they reset, and assuming that interest rates will be the same as they are now.    You have no idea what the rates will be 5 years out. Rates are near ZERO now.   Chances of them going higher in 5

[Frederic]

Well said and makes perfect sense . 

[pjn0987654321]

Where do you find the forecasted yield information?  

[indoubtgetout]

You take the "reset rate" plus the five year govt of canada yield to maturity as it is now.   Then you times that by $25 and that gives your estimated cash dividend on the reset date.   Then you take this estimated cash dividend and divide by the current price of the preferred share that you are looking at and that gives you the current reset yield.  I think we

[RagingBull3]

"as it is now".... Problem is, they don't Reset NOW.  !!!    LOL    Some reset in about 5 years from now.    LOL...     If you want NOW... then you are looking at +10% Yield on some of the Preferreds!!!!   Funny how you can think NOW applies to 5 years from now. In 5 years, who knows what the rate will be.   We

[RagingBull3]

Why don't you do 10year, 20 years, 30 years..... I guess it's all the same rate to you....the NOW rate.   LOL

[RagingBull3]

14%  ??!!!!!   I'll be definitely buying some  !!!!!! Looks like that's what you are hoping for also, I'm guessing.

[RagingBull3]

14% possible....   I've got a ton at 16-17%.   Looking to add more!    If you look at my old post, I was even hoping for 20% !!!!

[RagingBull3]

"Certainly High Yields none the less".....   Even by indoubtgetout's own words, the rates he posted he considers HIGH.       And IMHO these rates are the Absolute Bottom, if you believe in what the Bank of Canada said and if you think current rates will hold for the next 5 years.   Otherwise up from here!

[RagingBull3]

Of coarse these yields he/she posted is based on a particular share price.    Yields can go down if share price goes up.     Bottom refers to the RATE at dividend is calculated.

[RagingBull3]

Not sure what you are smoking, but bashing the Preferreds indirectly bashes the Commons more so.  Do you know what Preferred means????   They are a "Higher Class" of Common Shares, Preferred.     If you don't believe in the Preferreds, then you certainly shouldn't be investing in the commons.   But I'm guessing you're just a

[Husky4000]

Preferreds are not a 'higher class of commons'.  They don't carry voting rights, as commons do.  They are  like a hybrid between bonds and commons.  They are illiquid and trade like bonds.  Upside is 'limited' and depend on interest rates.   Preferred get priority in case of bankruptcy.  In a sense, they are less risky. I don't

[RagingBull3]

Preferreds are "shares".   Commons are shares.    Whether they have voting rights or not do not determine if they are shares or not.   Preferreds are a "higher" class of shares.  They have "Priority" over Commons.   Hence, I called them "higher class".    Many comanies have common shares that have no

[Husky4000]

They are shares but at the same time are not...They are not entitled to the company equity in the same sense as commons.  Let's say Husky makes 5$ EPS next year and trades at 10 p/e, commons will be at 50$.  16 times current price.  Preffereds are capped. They will never trade at 150$... If a special divy is declared, it is on the commons. Etc.. So yeah, they are 'shares'

[RagingBull3]

Yes, they are more like Debt.    Like I said, think only reason they are called shares is because the company has the right to "suspend" the dividend.    Basically that's the main difference between the Preferreds and DEBT.   I agree with everything you said below, but I'm just playing the Preferreds only for now.... accumulating.