this is a horrendous article that makes zero sense. If MEG is like a utility, so is every other E&P stock in Canada. The main difference is MEG is NOT like a utlity because its debt levels are much much much lower than a typical utlity (which are usually leveraged several turns higher than E&Ps) and are much more rate sensitive than E&Ps. Utilities trade like bond proxies. MEG does not
This is an absolutely ridiculous and pointless argument.
Interesting perspective, you make a good case. I have a holding, basically I sold all my CVE and moved it to MEG. MEG has been buying back shares and retiring debt, eventually all the cash will go direct to shareholder imo. On the other hand CVE has so much potential, but just cant deliver, a company similar to CVE is SU, and they are firing on all cylinders for the last 18 months...
That's why I own cardnial and not meg. There
giving back to shareholder
this is a horrendous article that makes zero sense. If MEG is like a utility, so is every other E&P stock in Canada. The main difference is MEG is NOT like a utlity because its debt levels are much much much lower than a typical utlity (which are usually leveraged several turns higher than E&Ps) and are much more rate sensitive than E&Ps. Utilities trade like bond proxies. MEG does not
This is an absolutely ridiculous and pointless argument.
Thanks for your valuable insights
Interesting perspective, you make a good case. I have a holding, basically I sold all my CVE and moved it to MEG. MEG has been buying back shares and retiring debt, eventually all the cash will go direct to shareholder imo. On the other hand CVE has so much potential, but just cant deliver, a company similar to CVE is SU, and they are firing on all cylinders for the last 18 months...
Now if you use your preferred BSM Black-Scholes model based on reserve for valuation, wouldn't the outcome be totally different.
BS value about $26
Good point, its like a utility with massive debt which they are quickly retiring...
I have to admit , I like buybacks