Wednesday, April 15, 2009

Husky Energy 2

I am continuing my reviewing of this stock (TSX-HSE) today. I am sorry, but yesterday I said this was on Mike Higgs list, but I was mistaken. This stock is on the Dividend Achievers list at I have gone over the dividends again on this stock. The dividend I received in January on this stock was at $.50 a share and the next one will be for $.30 a share for a 40% decrease.

However, this company has a habit of increasing and decreasing dividends over a year and they also have a habit of issuing special dividends. If the dividends declared this year does not change, the actual change for this year will be a decrease in dividends by only 10.3%. Dividends received in 2008 were for $1.56 (.33, .33, .40, and .50). Dividends potential for 2009 could be $1.40 (.50, .30, .30, and .30). However, the year is not over yet, so it is hard to tell what the final results will be.

In regards to insider buying and insider selling, there appears to be little of anything going on, except some very minor buying at the end of May in 2008. This tells us nothing. The current yield at 4.1% is slightly higher than the 5 year average of 3.5%. The P/E is hard to judge. If you take current price and last year’s earnings, you get a P/E of less than 7. If you consider what the earnings is expected to be in 2009, which is around $1.40 or so, then, the P/E is around 20. If you consider what the estimate earnings are for 2010, when they are expected to revive a bit, the P/E is about 11, which is about the same as the 5 year average to the last annual report of 2008.

If you look at what the analysts are saying about this stock, it has recommendations from Strong Buy to Sell, the whole gamut. (See my site for information on analyst ratings.) It’s really a toss-up between a Buy and a Hold for a consensus. A thing to mention is that the Globe investor site gives this stock a 5 star rating. This basically means it is best in its class. As far as I can see, nothing really stands out in this stock. It seems neither to be a bad stock, nor one at a good price. I will hold my small amount of this stock for now.

This company is one of Canada's largest energy and energy-related companies. The Company's operations include the exploration, development and production of crude oil and natural gas. Husky works in Western Canada, in off-shore Eastern Canada and in off-shore China and Indonesia. Its web site is See my spreadsheet on this company at

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets.

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