I am already down significantly on this stock - but i agenrally buy and hold when getting a good dividend. But in all honesty - we are near a PE of five. How can there be more downside? What is leading to a lack of buyers?
This stock is down because the market is down and your President is sending it down with his statements. He has no shame. I know this company because I once owned two fertilizer plants that made ammonium thio-sulfate and liquid phosphate. Fertilizer is a major part of this company. It will be around for a long time. Own it for both the oil and the nitrogen side. They make huge amounts of money. Compare POT. It climbed to over $200/share in two years, and they just make potash. Karl didn't buy 75% of this stock to lose money. He can see the long side of this, so don't worry. This spring the nitrogen side will really shine here.
The dividend is not safe. Payout ratio is over 150% ! They just began paying a dividend in 2013. Check out historical prices of CVI also. At one time it was over $70 and now is only in the high 30's. Something's not right, but I've been waiting for a good entry point. It seems like a great company.
You are completely wrong. The Dividend is 100% safe. If you read last quarters report you would have seen that the company has derivative hedges in place whereby if the spread is only $2.00 a barrel they are going to get over $20.00 a barrel spread for the next 2 quarters and next year the spread is even more favorable but the quantity of barrels hedged will be less. So the dividend is safe for this year and next year.