PrairieSky Royalty

PSK-T

Analysis and Opinions about PSK-T

Signal
Opinion
Expert
COMMENT
COMMENT
April 20, 2016

A very good business model. You collect a nice stream of cash, depending on how much people put into the ground in your zone. Keep in mind that there is torque to the model. When energy prices are higher, more people want to drill and you get better pricing. Today it is the exact opposite. Management is very competent and are return oriented. If looking for a high-quality way to play energy, this is the perfect type of business.

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A very good business model. You collect a nice stream of cash, depending on how much people put into the ground in your zone. Keep in mind that there is torque to the model. When energy prices are higher, more people want to drill and you get better pricing. Today it is the exact opposite. Management is very competent and are return oriented. If looking for a high-quality way to play energy, this is the perfect type of business.

PAST TOP PICK
PAST TOP PICK
March 17, 2016

(A Top Pick April 2/15. Down 16.23%.) Has been trimming his position. Valuation is rich, especially when comparing to a Freehold Royalty (FRU-T). Also, Canadian Natural Resources (CNQ-T) vended their freehold land and gross overriding royalties into this company for an almost 20% shareholder basis. They’ve given indications that they want to dividend half of those 44 million shares to CNQ shareholders, selling the other half on the market. That creates an overhang for shareholders of Prairie Sky. Still likes the company.

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(A Top Pick April 2/15. Down 16.23%.) Has been trimming his position. Valuation is rich, especially when comparing to a Freehold Royalty (FRU-T). Also, Canadian Natural Resources (CNQ-T) vended their freehold land and gross overriding royalties into this company for an almost 20% shareholder basis. They’ve given indications that they want to dividend half of those 44 million shares to CNQ shareholders, selling the other half on the market. That creates an overhang for shareholders of Prairie Sky. Still likes the company.

PAST TOP PICK
PAST TOP PICK
February 23, 2016

(A Top Pick Jan 20/15. Down 12.92%.) Down because of energy prices, but also companies are drilling less on their lands. Also, did a large asset swap with Canadian Natural Resources (CNQ-T) in exchange for shares, and because of financial concerns of CNQ, they may want to be selling some of those shares. The Short interest in this company is very high because of concerns that they are going to cut their dividend. That should really shock no one.

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PrairieSky Royalty (PSK-T)
February 23, 2016

(A Top Pick Jan 20/15. Down 12.92%.) Down because of energy prices, but also companies are drilling less on their lands. Also, did a large asset swap with Canadian Natural Resources (CNQ-T) in exchange for shares, and because of financial concerns of CNQ, they may want to be selling some of those shares. The Short interest in this company is very high because of concerns that they are going to cut their dividend. That should really shock no one.

BUY
BUY
February 22, 2016

A massive land holder in Western Canada who just made another massive acquisition. The dividend (6.3%) could be cut under current pressures, however. You have to be in the sector. A dividend cut is probably largely discounted in the stock price.

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PrairieSky Royalty (PSK-T)
February 22, 2016

A massive land holder in Western Canada who just made another massive acquisition. The dividend (6.3%) could be cut under current pressures, however. You have to be in the sector. A dividend cut is probably largely discounted in the stock price.

WAIT
WAIT
February 10, 2016

(Market Call Minute.) There is talk about a dividend cut, and thinks it is quite likely. They don’t want to carry any debt, and the payout ratio is over 100% right now. They can pay out almost all their cash flow because they don’t have to spend any money to drill. However, with Canadian Natural Resources (CNQ-T) selling their royalty assets to Prairiesky, you have to recognize that CNQ has a 19% ownership. They could cover off some of their debt to CNQ shareholders in the form of a dividend. Wait until that is over.

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PrairieSky Royalty (PSK-T)
February 10, 2016

(Market Call Minute.) There is talk about a dividend cut, and thinks it is quite likely. They don’t want to carry any debt, and the payout ratio is over 100% right now. They can pay out almost all their cash flow because they don’t have to spend any money to drill. However, with Canadian Natural Resources (CNQ-T) selling their royalty assets to Prairiesky, you have to recognize that CNQ has a 19% ownership. They could cover off some of their debt to CNQ shareholders in the form of a dividend. Wait until that is over.

WATCH
WATCH
January 6, 2016

Royalties are a great way to play commodities. You have no operating exposure and they have had a big correction here. If and when you turn positive on the energy complex, this would be a great buy. Well-managed and have a clean balance sheet. If we get oil and gas looking a little better in the spring, this will be a big beneficiary.

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Royalties are a great way to play commodities. You have no operating exposure and they have had a big correction here. If and when you turn positive on the energy complex, this would be a great buy. Well-managed and have a clean balance sheet. If we get oil and gas looking a little better in the spring, this will be a big beneficiary.

COMMENT
COMMENT
December 8, 2015

This is a royalty company. They have been buying assets from producers who are looking to raise capital. Thinks they are now over distributing, so there is potential of a dividend cut. He didn’t buy into it because he thought the valuation multiple was too high.

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PrairieSky Royalty (PSK-T)
December 8, 2015

This is a royalty company. They have been buying assets from producers who are looking to raise capital. Thinks they are now over distributing, so there is potential of a dividend cut. He didn’t buy into it because he thought the valuation multiple was too high.

TOP PICK
TOP PICK
November 11, 2015

It is very rare that you get a brand-new, almost another energy class, of shares to buy, and this is it. A royalty company does not pay drilling, operating or abandonment costs. Companies farm on royalty lands and the royalty owner gets a cheque off the top. Operating costs are less than $5 BOE, which is remarkable. This has a very, very long-term lifespan.

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PrairieSky Royalty (PSK-T)
November 11, 2015

It is very rare that you get a brand-new, almost another energy class, of shares to buy, and this is it. A royalty company does not pay drilling, operating or abandonment costs. Companies farm on royalty lands and the royalty owner gets a cheque off the top. Operating costs are less than $5 BOE, which is remarkable. This has a very, very long-term lifespan.

COMMENT
COMMENT
September 9, 2015

His model price is $14.93 a 42% downside. Thinks the stock moves lower. It has to go to $20.87.

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PrairieSky Royalty (PSK-T)
September 9, 2015

His model price is $14.93 a 42% downside. Thinks the stock moves lower. It has to go to $20.87.

TOP PICK
TOP PICK
September 2, 2015

Div 0.11 yield 4.54% It's great to have a portfolio because you can then diversify. They don't have as much risk as the companies that do it all. They won't be doing as much exploration right now, but with higher oil prices will do well. Lots of cash on their books, lots of assets. They will end up stronger.

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PrairieSky Royalty (PSK-T)
September 2, 2015

Div 0.11 yield 4.54% It's great to have a portfolio because you can then diversify. They don't have as much risk as the companies that do it all. They won't be doing as much exploration right now, but with higher oil prices will do well. Lots of cash on their books, lots of assets. They will end up stronger.

HOLD
HOLD
July 31, 2015

Hasn’t worked out too well for those who jumped into the new issue, but as a royalty firm, he thinks the payout is good. Have good properties. They are still hovering under Alberta’s black cloud. Until we actually see some stabilization, and perhaps a move into the high $50s/low $60s in oil, he is not willing to step into that market. If you are there, your income is probably reasonably safe.

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Hasn’t worked out too well for those who jumped into the new issue, but as a royalty firm, he thinks the payout is good. Have good properties. They are still hovering under Alberta’s black cloud. Until we actually see some stabilization, and perhaps a move into the high $50s/low $60s in oil, he is not willing to step into that market. If you are there, your income is probably reasonably safe.

COMMENT
COMMENT
July 28, 2015

A tricky company to assess, because there are all sorts of little things they can do. A royalty company, so they don’t really drill the wells. If the commodity situation is really bad and nobody drills wells and you are in a decline curve, your production goes down and there is nothing you can do about it. This company is still too expensive.

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A tricky company to assess, because there are all sorts of little things they can do. A royalty company, so they don’t really drill the wells. If the commodity situation is really bad and nobody drills wells and you are in a decline curve, your production goes down and there is nothing you can do about it. This company is still too expensive.

TOP PICK
TOP PICK
July 23, 2015

There are different kinds of royalty streams. Theirs come from surface to basement royalties that extend over a tremendous section of the country. It provides certainty for companies with a drilling plan. Their margins are excellent.

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There are different kinds of royalty streams. Theirs come from surface to basement royalties that extend over a tremendous section of the country. It provides certainty for companies with a drilling plan. Their margins are excellent.

COMMENT
COMMENT
July 14, 2015

The chart is kind of a “go nowhere” pattern. These kinds of patterns don’t really interest him unless they break out one way or another.

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The chart is kind of a “go nowhere” pattern. These kinds of patterns don’t really interest him unless they break out one way or another.

HOLD
HOLD
July 13, 2015

Sell PrairieSky (PSK-T) and move to White Cap (WCP-T)? It depends on what your cost is in this company. If you have a good cost base and you have good money, he doesn’t think he would Sell to buy White Cap, although he thinks it is the best run of all the dividend companies out there.

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Sell PrairieSky (PSK-T) and move to White Cap (WCP-T)? It depends on what your cost is in this company. If you have a good cost base and you have good money, he doesn’t think he would Sell to buy White Cap, although he thinks it is the best run of all the dividend companies out there.

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