When "blood
was in the streets" - posted as "Bottom Picking" on the Fearless Forecasters board.
__________________
June, 2008 - This one worked out:
By no means is this my favorite, since it's listed on a US exchange and it's been bid way up.
Although, the yield is still over 10%, pretty high for Enerplus.
Here are my guys:
Great management IMO, and a conservative style that should have them weather the storms of market and government.
Peyto yields 8.8%, ARC 10.3%.
Peyto =
$2.70 Cdn, cost of production, for each barrel of oil equivalent. ARC = $9.50. ($Cdn. pretty much = $US, Cdn. was 2% over the US today.)
Peyto = 16 years proven reserves, ARC = 10. They're also working to expand this.
Peyto = 83% NG, 17% oil production. ARC = right about 50/50.
They both have roughly a conservative 60% dividend payout.
Peyto = 0% share growth (dilution). ARC = 2.8%. Nice.
I'm not saying rush and buy these. Hoped for a good pullback, like to $19 for Peyto and $26 for ARC, but no dice. Have sold some Enerplus to buy more of these two along the way, and got rid of all the Harvest (HTE - NYSE) and HTE/UN.TO on Toronto (Stockcharts symbols), since though it maintained the big dividend, it has high debt and was underperforming this year.
I still have Provident - PVX - NYSE and PVE/UN.TO - things are looking good there too. It really got whacked in Nov., Dec., and Jan, but has come back and pays 12.4% currently.
And for fun and high dividends:
Insiders have been buying this one. Yields just over 20% at present, but is only paying out 50% of distributable cash in dividends. The chart looks to me like the market is discounting a dividend cut, but the oil services company (it's not a producer) has set itself up well in the oil sands area. Not one to bet the farm on, but if the dividend doesn't get cut the share should gain handsomely. Even if it does get cut, the shares have fallen already.
Best,
Doug