Thursday, July 3, 2008

Husky Energy Purchased

I decided to buy some of this stock (HSE-TSX) to day. What I look for in a buy is a relatively reasonable price for the stock. Paying a reasonable price for a stock will greatly affect your long term returns for the stock

To get Earnings per Share (EPS) price, I look at what several sites might say about what the EPS might be for the current year. I look at the, Big Charts site, Investor’s Digest paper, and TD Waterhouse information. The Investor’s Digest is a bi-monthly paper to which I subscribe. TD Waterhouse site has their own reports plus Financial Post Investor Reports and Ink Company Insider reports. If the stock is also sold on an American Exchange, the stock could have Standard & Poor Stock Report and Reuters ProVestor Plus Report. The Globe Investors site, Investor’s Digest and Big Charts site can use the same analyst for EPS values, so be careful. From looking at these different sites and reports, I try to strike a reasonable EPS value for this year.

Once you have an EPS value for this year, you can get a P/E value and yield value. You can also get such values directly from the Globe Investors site. The Globe Investors site uses an EPS for the last 12 months.
I also get a trailing P/E. This is using current price/last year’s EPS. Next, I compare the P/E, Trailing P/E and Yield to an average for the last 5 years based on the closing price of the stock for last 5 Fiscal Years. This will help to determine if the price you want to pay for a stock is reasonable.

With this purchase, I only used a third of the money I got from my SNC sale, but got enough dividends on HSE to replace the dividends I will lose from my SNC sale. I have started on my Blog a list of the “Sites I Use”.

See my spreadsheet on Husky Energy at See my website at

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