Where to put my money?

[Chandler_Racing]

I am not familiar with sDRSP, is that some form of self directed mortgage? Regardless, switching from a Trust to Corporation will result in increases to taxes paid or payable.

Looking at their pay-out ratio (108.3% - 3 months ended Sept 30, 2010) that makes me question their ability to continue the distribution at the current level. Essentially, they're paying out more than they're making.

Couple that with a struggling balance sheet in that they do not have enough cash to meet current obligations ($77M in cash and receivables compared to $193M in current obligations), that does not bode well to me at least with respect to maintaining their distribution.

[89coupe]

Originally posted by Chandler_Racing
I am not familiar with sDRSP, is that some form of self directed mortgage? Regardless, switching from a Trust to Corporation will result in increases to taxes paid or payable.

Looking at their pay-out ratio (108.3% - 3 months ended Sept 30, 2010) that makes me question their ability to continue the distribution at the current level. Essentially, they're paying out more than they're making.

Couple that with a struggling balance sheet in that they do not have enough cash to meet current obligations ($77M in cash and receivables compared to $193M in current obligations), that does not bode well to me at least with respect to maintaining their distribution.

Are you sure you read everything? Or did you just skim?

Read this.
http://pembina.mediaroom.com/index.p...336&item=19571

and this.
http://pembina.mediaroom.com/index.p...336&item=20259

and this.
http://pembina.mediaroom.com/index.p...336&item=20390

[Chandler_Racing]

Originally posted by 89coupe



Are you sure you read everything? Or did you just skim?

Read this.
http://pembina.mediaroom.com/index.p...amp;item=19571

and this.
http://pembina.mediaroom.com/index.p...amp;item=20259

and this.
http://pembina.mediaroom.com/index.p...amp;item=20390

Go read the statements, everything I discussed is included in the statements or easily calculated based on a few numbers. With that said, I did not read the notes to the statements, MD&A, or other areas in great detail. Note that they were based on Q3 2010.

For the three press releases: ""Pembina intends to use the net proceeds from the Offering to partially repay existing credit facilities, thereby making borrowing capacity available to fund a portion of the Corporation's capital expenditure program, including capital expenditures relating to the Corporation's growth projects, and for general corporate purposes."

All you're telling me is they needed to raise additional capital to continue to meet capital expenditure requirements. My posts were not to suggested that they're unable to operate as a going concern or that they are unable to raise additional capital.

Simply they were highlighting that the dividend is clearly not sustainable and they do have cash flow issues, thus, the need for the debentures.

[89coupe]

Originally posted by Chandler_Racing


Simply they were highlighting that the dividend is clearly not sustainable and they do have cash flow issues, thus, the need for the debentures.

Exactly, so now they have money in place. So, what now?

[barmanjay]

I have a friend who may be looking for investors for inner city development project. ($100k total investment opportunity)

short term investment, <1 year with 10% return.

When I find out more, I'll post more.

[Chandler_Racing]

Originally posted by 89coupe


Exactly, so now they have money in place. So, what now?

Are you suggesting it's a good idea to obtain debt financing to continue to maintain distributions.... The debentures were obtained to maintain capex programs and general admin costs.

Distributions should be paid from distributable cash meaning cash flow from OPERATIONS, less some minor adjustments for non working capital, stock options, etc.

When a company is paying out more than it makes, that's a strong indication that the distribution is not sustainable. I would much rather see management take the cash used in distributions and use that on capital programs or ac-creative acquisitions.

[89coupe]

Originally posted by Chandler_Racing


Are you suggesting it's a good idea to obtain debt financing to continue to maintain distributions.... The debentures were obtained to maintain capex programs and general admin costs.

Distributions should be paid from distributable cash meaning cash flow from OPERATIONS, less some minor adjustments for non working capital, stock options, etc.

When a company is paying out more than it makes, that's a strong indication that the distribution is not sustainable. I would much rather see management take the cash used in distributions and use that on capital programs or ac-creative acquisitions.

LOL, do you have no foresight?

Pembina intends to use the net proceeds from the Offering to partially repay existing credit facilities, thereby making borrowing capacity available to fund a portion of the Corporation's capital expenditure program, including capital expenditures relating to the Corporation's growth projects, and for general corporate purposes. Pembina's current suite of growth projects include the construction of the Nipisi and Mitsue pipelines, the construction of an enhanced NGL extraction facility at the Cutbank complex, and projects that are expected to expand the transportation service options the Corporation can offer producers developing the Cardium oil formation located in central Alberta.

The Debentures will bear interest from the date of issue at 5.75% per annum, payable semi-annually in arrears on May 31 and November 30 each year commencing May 31, 2011. The Debentures will have a maturity date of November 30, 2020 (the "Maturity Date"). The Debentures will be convertible at the holder's option at any time prior to the close of business on the earlier of the Maturity Date and the business day immediately preceding the date specified by Pembina for redemption of the Debentures into fully paid and non-assessable common shares ("Common Shares") of Pembina at a conversion price of $28.55 per Common Share (the "Conversion Price"), being a conversion rate of approximately 35.0263 Common Shares for each $1,000 principal amount of Debentures.

The Debentures will not be redeemable by Pembina before November 30, 2014. On or after November 30, 2014 and prior to November 30, 2016, the Debentures may be redeemed in whole or in part from time to time at Pembina's option, provided that the volume weighted average trading price of the Common Shares on the TSX on the 20 consecutive trading days ending on the fifth trading day preceding the date on which the notice of the redemption is given is not less than 125% of the Conversion Price. On and after November 30, 2016, the Debentures may be redeemed in whole or in part from time to time at Pembina's option at a price equal to their principal amount plus accrued interest.

[revelations]

OP like many said, stocks are a good idea.

You dont have to be a rocket scientist to forecast long term trends of a stock like this: (Bell)

http://stockcharts.com/h-sc/ui?s=BCE...d=p95355761097


The one mentioned above, PPL.TO is trending sideways right now, some action for swing traders though.

http://stockcharts.com/h-sc/ui?s=PPL...d=p35563555811

[89coupe]

Originally posted by revelations
OP like many said, stocks are a good idea.

You dont have to be a rocket scientist to forecast long term trends of a stock like this: (Bell)

http://stockcharts.com/h-sc/ui?s=BCE...d=p95355761097


The one mentioned above, PPL.TO is trending sideways right now, some action for swing traders though.

http://stockcharts.com/h-sc/ui?s=PPL...d=p35563555811

Take both those companies and show a 10 year chart.

[Chandler_Racing]

Originally posted by 89coupe
[B]

LOL, do you have no foresight?

Clearly you have no experience reading financial statements. This has nothing to do with foresight, but you simply don't understand the gravity of the situation.

They're using additional debt to fund operations which has to repaid with interest. Instead they could use distributable cash to do the same thing, or at least in part.

This would result in capital appreciation in theory as opposed to a dividend, which also has preferential tax treatment.

Your whole investment thesis is buy Pembina you will get a sweet dividend and the stock has gone up in the past so clearly it will go up in the future! You have a lot to learn.

[ExtraSlow]

Pembina is a great company, but you can't just dismiss the points being raised. These are exactly the kind of questions that a person should be asking before investing in any company.

Myself, even with a company I belive in, I can't bring myself to hodl any more than 10% of my assets in it. That means at a minimum, I need ten companies at a time to invest in. Some people are more comfortable having thier investments concentrated.

[89coupe]

Originally posted by Chandler_Racing


Clearly you have no experience reading financial statements. This has nothing to do with foresight, but you simply don't understand the gravity of the situation.

They're using additional debt to fund operations which has to repaid with interest. Instead they could use distributable cash to do the same thing, or at least in part.

This would result in capital appreciation in theory as opposed to a dividend, which also has preferential tax treatment.

Your whole investment thesis is buy Pembina you will get a sweet dividend and the stock has gone up in the past so clearly it will go up in the future! You have a lot to learn.

LOL, I think you better turn that statement on yourself. I simply brought forth a company that was offering good returns and will continue to do so for years to come.

I think you better do a little more homework before you spout off anymore nonsense.

[Chandler_Racing]

Originally posted by 89coupe


LOL, I think you better turn that statement on yourself. I simply brought forth a company that was offering good returns and will continue to do so for years to come.

I think you better do a little more homework before you spout off anymore nonsense.

You've not countered a single point I have made. Past performance is not representative of what will happen in the future, new contracts do not represent profitability (although they can), and and an unhealthy balance sheet and over extended pay out ratio do no result in sustainable distributions. End of story.

I prepare the statements you're looking at for a living.

Ultimately, Pembina might be a good company to invest in, but surely not for the reasons you're suggesting.

[89coupe]

Originally posted by Chandler_Racing


You've not countered a single point I have made. Past performance is not representative of what will happen in the future, new contracts do not represent profitability (although they can), and and an unhealthy balance sheet and over extended pay out ratio do no result in sustainable distributions. End of story.

I prepare the statements you're looking at for a living.

Ultimately, Pembina might be a good company to invest in, but surely not for the reasons you're suggesting.

Cause it's complete nonsense.

You do this for a living? Are you serious?

Go over the Q3 report then and give me your expert opinion. I can't wait to read your comments.

http://www.pembina.com/titanweb/pemb...RIM%202010.pdf

[Chandler_Racing]

Originally posted by 89coupe


Cause it's complete nonsense.

Refute just one point factually.

You do this for a living? Are you serious?

Yes.

Go over the Q3 report then and give me your expert opinion. I can't wait to read your comments.

http://www.pembina.com/titanweb/pemb...RIM%202010.pdf [/B]

I really don't have time to read and comment in detail on the financials. I have already countered each point you have suggested with respect to the stock.

Also, based on the discussions above and for those reasons, I have no interest in researching the stock further as it does not even pass an initial screening of stocks I would consider.

However, since it appears you need expert advice, maybe consider that out of 9 analysts I reviewed in the last four weeks 4 have a SELL recommendations and 5 others a hold. Compare that to just last year when the stocks analysts had 1 strong buy, 1 buy,4 holds, and only 2 sell recommendations.

Clearly, smart money is exiting the stock. Only makes sense why you're holding on.

[revelations]

Originally posted by 89coupe


Take both those companies and show a 10 year chart.

6 years is a quick check on my part.... too lazy to find a free 10 yr tool.

http://ca.finance.yahoo.com/q/bc?s=P...l&q=l&c=bce.to

Both would have been good buys in winter 2009 (like many).

[Chandler_Racing]

[89coupe]

Originally posted by Chandler_Racing


Refute just one point factually.



Yes.



I really don't have time to read and comment in detail on the financials. I have already countered each point you have suggested with respect to the stock.

Also, based on the discussions above and for those reasons, I have no interest in researching the stock further as it does not even pass an initial screening of stocks I would consider.

However, since it appears you need expert advice, maybe consider that out of 9 analysts I reviewed in the last four weeks 4 have a SELL recommendations and 5 others a hold. Compare that to just last year when the stocks analysts had 1 strong buy, 1 buy,4 holds, and only 2 sell recommendations.

Clearly, smart money is exiting the stock. Only makes sense why you're holding on.

Countered? LOL, you haven't even got the facts correct.

Keep following those analysts, they are so smart...LOL

[89coupe]

Originally posted by revelations


6 years is a quick check on my part.... too lazy to find a free 10 yr tool.

http://ca.finance.yahoo.com/q/bc?s=P...l&amp;c=bce.to

Both would have been good buys in winter 2009 (like many).

Here is a 10 year chart for you. PPL vs BCE. BCE is the blue line.

[xxviet]

you should invest the money into a new race city if there will be one