moneygardener

Trading Under Book Value

Gino I think you are oversimplifying. Price to book is not simply a reflection of financial wherewithall (free cash flow etc.). The ratio also reflects the earning power of assets that contribute to book. A tech firm will always have a higher price to book than a resource firm, regardless of their balance sheet.

Why I Traded Petro-Canada for Husky Energy

No regrets Sean. Since April 27 both stocks are up about 15%. The nice thing about keeping the exposure in the same sector is that theoretically they should both have the same reaction to high oil. The yield and dividend growth are the key factors for the switch though.