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Strategies & Market Trends : Technical analysis for shorts & longs
SPY 689.100.0%4:00 PM EST

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To: Cogito Ergo Sum who wrote (47660)4/2/2012 3:21:21 PM
From: Johnny Canuck  Read Replies (2) of 69965
 
CPG.TO closing in on a major support area. Like AVF.TO, MSI.TO , CPG.TO has one of those cost structures where it looks like they are paying out more in dividends than they earn in EPS. They have one of those complex cost structures where it is difficult to tell what the financial status really is for the average investor on the street. I am little more cautious on dividend paying energy stocks right now because of this financial structure. I can't tell if they are covering their dividend or not and like AVF.TO they could cut dividends at any point. Given the differential between the price of North American oil and the price of world oil a lot of Canadian producers may be under pressure as they hedges expire.

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