um last I checked MEG has the best balance sheet it's had probably EVER
at $40 CAD, 90% of the oil sector is at HUGE risk of insolvency if those prices held for long (however, your fantasy scenario is not likely to occur for the long run so it's an useless exercise)
If I might ask, in the scenario you describe - which by the way aligns with my own thinking re the possibility and consequences of lower Nat Gas prices- how do you see PNE, BIR and SDE weathering this turbulence to their solvency? Also, I believe you have in the past been a shareholder of BTE. Do your BTE calculations suggest you have sold or will be selling your shares? I ask, not to pry into your portfolio, but to ask about any cracks in BTE's balance sheet you see, or are starting to see. Disclosure: I have significant-to-me positions in all 4 companies. Thanks for any added wisdom you can share.
Thank you for the article. We are new to investing in O&G (past 4 years) but not the industry as been SU employee for a decade. Will we not see any stock gains now for any O&G companies for at least 2 years?
Trading stocks is a mug's game, particularly commodity based companies. Best outcomes are long term streams of rising dividends, not gains on stock price. Selling for a gain comes at the expense of someone selling at loss, with fees and commissions taking a toll. Buy and hold - but buy well. Many well run oil and gas companies are trading below intrinsic value and promise years of dividends - e.g. Suncor, CNQ, TOU, CVE, ARX
This idiot. Secondary trading is a zero sum game with traders as a group losing money owing to transaction costs including fees, commissions and portfolio management fees. The only money investors as a class ever get is divdends and interest from issuers or other cash distributions. Long term holds of profitable and growing companies provide both a dividend stream and potential capital gains if a sale is needed, but selling solely for a gain triggers taxes and costs and leaves the investor to find a replacement investment at least as good as the one sold, a challenge for most, and impossible for the whole class of traders. Nice to meet someone who is so much smarter than everyone else that he can make money trading. I can't but my measly millions have been enough for me.
trading is free. not sure what you mean by "fees and commissions and portfolio management fees"
Sounds like you're getting ripped off in addition to utilizing underperforming strategies like buying companies that pay dividends, then cut their dividends and then worse fall in value such as Birchliff Energy. I'm sure there are many others that you have favored which have severely underperformed MEG , Athabasca, CNQ, and more.
Your track record is pretty piss poor, you would think you would have some humility by now. Nonetheless, what I continue to read is a continued arrogance, self entitlement, and a know-it-all persona from an octogenarian who clearly is over his skis.
um last I checked MEG has the best balance sheet it's had probably EVER
at $40 CAD, 90% of the oil sector is at HUGE risk of insolvency if those prices held for long (however, your fantasy scenario is not likely to occur for the long run so it's an useless exercise)
If I might ask, in the scenario you describe - which by the way aligns with my own thinking re the possibility and consequences of lower Nat Gas prices- how do you see PNE, BIR and SDE weathering this turbulence to their solvency? Also, I believe you have in the past been a shareholder of BTE. Do your BTE calculations suggest you have sold or will be selling your shares? I ask, not to pry into your portfolio, but to ask about any cracks in BTE's balance sheet you see, or are starting to see. Disclosure: I have significant-to-me positions in all 4 companies. Thanks for any added wisdom you can share.
I am out of BTE at this point. Terrific leverage to higher oil prices but vulnerable to lower ones.
I like the prospects for gas and think PNE, BIR and SDE are going to do well this coming winter.
Many thanks! This is quite helpful to my own thinking. My Regards . . . .
Thanks for the info. You are very insightful and well informed.
Thank you for the article. We are new to investing in O&G (past 4 years) but not the industry as been SU employee for a decade. Will we not see any stock gains now for any O&G companies for at least 2 years?
Trading stocks is a mug's game, particularly commodity based companies. Best outcomes are long term streams of rising dividends, not gains on stock price. Selling for a gain comes at the expense of someone selling at loss, with fees and commissions taking a toll. Buy and hold - but buy well. Many well run oil and gas companies are trading below intrinsic value and promise years of dividends - e.g. Suncor, CNQ, TOU, CVE, ARX
this makes zero sense!!!!!! what type of idiot "invests" for the sole purpose of dividends and not gains in the stock price?????
Is this what someone who has failed in stock investing tells himself and others? To not buy for capital appreciation and hold for pitiful dividends???
This idiot. Secondary trading is a zero sum game with traders as a group losing money owing to transaction costs including fees, commissions and portfolio management fees. The only money investors as a class ever get is divdends and interest from issuers or other cash distributions. Long term holds of profitable and growing companies provide both a dividend stream and potential capital gains if a sale is needed, but selling solely for a gain triggers taxes and costs and leaves the investor to find a replacement investment at least as good as the one sold, a challenge for most, and impossible for the whole class of traders. Nice to meet someone who is so much smarter than everyone else that he can make money trading. I can't but my measly millions have been enough for me.
trading is free. not sure what you mean by "fees and commissions and portfolio management fees"
Sounds like you're getting ripped off in addition to utilizing underperforming strategies like buying companies that pay dividends, then cut their dividends and then worse fall in value such as Birchliff Energy. I'm sure there are many others that you have favored which have severely underperformed MEG , Athabasca, CNQ, and more.
Your track record is pretty piss poor, you would think you would have some humility by now. Nonetheless, what I continue to read is a continued arrogance, self entitlement, and a know-it-all persona from an octogenarian who clearly is over his skis.
Keep up the great work!!!
Thank you for your valuable insights. The best skiers keep their weight over their skis.
Thank you Michael! We appreciate your insights and articles!