Tuesday, October 28, 2014

Whitecap Resources lookin' good

Whitecap Resources (WCP) looks good -- but, don't take my word for it. Do your own due diligence. I've been wrong in the past and I'll be wrong again.

That said, TD put WCP on their Action List when the stock was going for $16.03. And the ScotiaBank has WCP rated as Sector Outperform. I've noticed that these investment 'tips' are not always right but they do point one in a direction-of-interest. In the end, the decision to invest rests with the investor.

I picked up 1000 shares at $14.76. But first, I checked out the Fundamentals. I paid particular attention to the Financial Statements. WCP looked like a keeper to me. Like I said, do your own research and see what you think.

With this purchase, my annual income just jumped by $750. With a payout ratio of only 59.65 percent the dividend looks safe. With a safe dividend, a drop in share value can be endured. If the share cost drops enough, and I hope it doesn't, I still have enough cash on the sidelines to buy another batch of shares if the price is right.

If a retreat should occur, I'd love to pick up some of this on a dip for my Tax Free Savings Plan.

Caught a fellow on BNN. He said he believed oil prices still had lots of room to fall. He said he had worked on the exchange floor for years and he sees $80 oil as expensive oil. Furthermore, Enbridge released a statement today warning oil may remain at the present level for the next two years. All this says take care with oil patch purchases. A good, solid, black bottom line may be more important today than ever.

I still feel good about WCP as an investment to hold.

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