But I can't resist PDS at this level, just added more at $24.85 per share, with 13.5% yield and forward PE of about 6. Fundies for PDS are just as good as they were before Mr. Flaherty did his dastardly deed. If Ottawa decides to do the dumb thing and continue with this stupid plan, it is now baked into the price. If they somehow get an infusion of wisdom and decide to leave existing trusts alone, it will go back up. And in the meanwhile, will still have 4 years of great yields taxed at 15% even if they still go ahead with the boneheaded plan.
I am buying and buying as I have reserved cash for moment like this. Market is short sigtedness for this solid company. It is a bargain for me as I don't think crude oil will go down more than $50/ barrel.
For the Canadian government to make 1 billion and destroy 20 to 40 billion for the people wealth. This is dumb.
I also may be a glutton for punishment, but, even with the uncertainty, I too added more PDS at these low prices. (Could go lower, but it's not going to zero--or it's unlikely.) Since it's a long term investment, I'm making the leap of faith that the company will remain profitable in the energy services business for quite a while. And, may even fare better converting back to a standard corporate structure.
PDS is not an ENRON. Its PPS took a hit due to govt actions, not corporate malfeasance. Its profitability is tied to one of Canada's most important economic sectors. With or without favorable tax considerations, PDS should remain a profitable company in the coming years.
In investing price swings are a fact of life. Sometimes ugly. Sometimes hard to step up to the plate and buy when there are so many clouds.