jfr1107

High-Yield Canadian Royalty Trusts vs. Dividend Growth Stocks

HTE's stock is not going to go back up until management makes good on raising the dividend once they have paid down $200MM in debt. Note: the increase in the dividend doesn't have to go back up until the dividend goes back up.
When I read all of the hogwash about HTE paying 10-11% in dividends, the percentage is based on a per share price somewhere in the 5's. I want to see the people who invested in HTE when it was selling for $25 to $30 a share. If the dividend goes back up, then the stock might (and there is a pretty good chance) that HTE will reach $13+ a share. They are making money. It is only the accountants and their shell games that make HTE look like it is a losing company.
Management needs to get its act together and do the right thing for their shareholders and quit looking 2 to 3 years down the road for potential buyers. Make money now with what you've got.

Harvest Energy.

I heard today that what is keeping HTE's price down was its overkill in paying down its debt. Back in December when every Canroy analyst out there was saying that HTE would have to cut its dividend by 50%, just like the other Canroys were going to have to do because of low commodity prices, etc., HTE went way overboard, almost berserk, by cutting its dividend by 85%. That is what has driven investors away. They can't figure out why management feels they have to pay off a big chunk of debt in so short a period of time. They could have just as easily reduced debt by the amount they wanted in 10-12 months by reducing the dividend to .15CDN. But NO!! They went nuts and reduced it to a nickel...so who wants to buy a stock where management's actions are questionable.

Harvest Energy and Other Canadian Trusts Expected to Cut Distribution

What is really amazing is how all of the financial wizards said that HTE would cut its dividend by 50% (from its .30CDN level). Instead they cut it by 85% down to .05CDN. They said they wanted to pay off debt. Even if they had cut the dividend only 50% instead of 85% they still would have had $~CD20-22MM to pay down debt.

What the heck, and when is HTE management going to put their dividend back in line with the rest of the CANROYS?

Still Avoiding DryShips

If the President and corporate officers of DRYS pull another shell game like they did previously with Cardiff, I strongly recommend the readers to contact the Greek embassy in Washington and get the telephone number for the Greek investigative agency that looks into cases where both Greek and foreign shareholders have been defrauded of their investments because of the slight of hand that Economou has pulled and ask that criminal charges be brought against him.

Harvest Energy and Other Canadian Trusts Expected to Cut Distribution

They are doing great on the refinery side. They could have paid their dividend from what the refinery itself was making particularly in Jan and Feb. 2009.


On Feb 20 12:24 PM Trader Rick wrote:

> Why is there no comment about Harvests refinery side ?
>
> They operate a 100k / day refinery so I would think they are doing
> well on that side.

Harvest Energy and Other Canadian Trusts Expected to Cut Distribution

They are doing great on the refinery side. They could have paid their dividend from what the refinery itself was making particularly in Jan and Feb. 2009.


On Feb 20 12:24 PM Trader Rick wrote:

> Why is there no comment about Harvests refinery side ?
>
> They operate a 100k / day refinery so I would think they are doing
> well on that side.

Harvest Energy Trust: Not Like Other Refiners

HTE wanted to spend almost $2 BN CDN to expand their refinery and then changed their mind and said the refinery is doing fine without the upgrades.
If this is the case, why not take the $2 BN CDN and build/buy a pipeline from their western Canadian oil reserves to the refinery so they can refine their own crude, etc.


On May 06 09:27 AM NOWHEREMAN wrote:

> I've owned it pre-collapse, pre-refinery...bought it high and low...it
> has 60+ gas stations and is expanding the refinerys capacity...only
> problem is getting its heavy to its own refinery...

Harvest Energy and Other Canadian Trusts Expected to Cut Distribution

I brought this issue up to some financial magazine and newspaper reporters who had just written stories on HTE. They did not know that HTE had a refinery, how much money it was making, etc. They just grouped HTE in with E&P companies which we know are doing bad because all they do is dig a hole and take out the oil, and when oil prices dropped their share price dropped accordingly. These writers were clueless on HTE refinery operations. One of them asked me if their refinery was dba under another name. I told him when it was first bought back in 07, it was NorthAtlantic, but is now HTE. He said he would do more due diligence in getting the facts on HTE refinery ops and the money they are making.


On Feb 20 12:24 PM Trader Rick wrote:

> Why is there no comment about Harvests refinery side ?
>
> They operate a 100k / day refinery so I would think they are doing
> well on that side.

Ten Top Value Traps with Unreasonably High Dividends

I feel the same about HTE. I had been reading financial news articles on HTE and the reporters lumped HTE into the E&P group of companies only. HTE has a very profitable global customer refinery operation but none of its earnings which are extremely good are mentioned. That is why I think HTE is not going to get caught up in cutting its dividend like the E&P companies had to do when the bottom fell out of the price of a bbl of oil. For every bbl of oil three (maybe 4) 42 gallons of distilled hydrocarbon expectorants are produced. Subtracting the cost of a bbl of oil, the remainder is a profit of anywhere from $12 to $18 per bbl of hydrocarbons that were refined. HTE has been hammered only through disinformation.


On Jan 21 03:54 PM longoil wrote:

> I disagree with the conclusion of this article.
>
> Take PWE for example. It has dropped in value by 60% over the last
> year.
> But it has a dividend yield of 28%, a price-to-book ratio of 0.6
> and price-to-earnings 4.5.
>
> Since when is a company with these statistics a bad company to invest
> in ???? I take PWE over most companies out there anyday.

Citigroup Forecasts High Distribution Cuts By Canadian Royalty Trusts

Don't forget HTE already made a div cut in Nov 2007 when they lowered the div from .38CDN to .30CDN. To do another div cut within 15 months of one made previously would not be a wise business decision and HTE management is a lot smarter than any analyst with the way they have hedged money, processed petroleum products, oil futures, etc. So, rumors about HTE cutting its div is to sew fear into people selling or people looking to get rich off the options market.


On Dec 02 07:11 AM lee99 wrote:

> For US investors they have already cut dividends by 20% with the
> weak loonie.
> Re most analysts opinions, it looks like one, it smells like one
> and I am glad I did not step in it.