Waiting for the comments to say “ if they didn’t do buybacks then the shares would be way less than $22”. When will investors learn that buybacks are useless in cyclical businesses. They can buy back all the stock they want but when oil drops 10% best be sure the stock will too.
It's a fair point. Most companies in this space seem to be preferring buybacks to large dividends. I have yet to see a cause/effect between buybacks and share price. Put me down as a dividend hound and happy to pay the taxes on distributions.
Thank you for another interesting article. Cenovus is on my shortlist. Great reserves, but at current price I see no edge for me over others like Suncor, Meg or CNQ. The latter is also well better managed than Cenovus.
Waiting for the comments to say “ if they didn’t do buybacks then the shares would be way less than $22”. When will investors learn that buybacks are useless in cyclical businesses. They can buy back all the stock they want but when oil drops 10% best be sure the stock will too.
In theory buybacks are very good when performed at cycle lows. In practice few have money & stomach to buy at cycle lows.
It's a fair point. Most companies in this space seem to be preferring buybacks to large dividends. I have yet to see a cause/effect between buybacks and share price. Put me down as a dividend hound and happy to pay the taxes on distributions.
Thank you for another interesting article. Cenovus is on my shortlist. Great reserves, but at current price I see no edge for me over others like Suncor, Meg or CNQ. The latter is also well better managed than Cenovus.