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  5. BIR: Hi 5I Regarding anthony questions , Not withstanding that BIR is surely in the doghouse, is it worth a second look now and at what price would you consider it worth the risk/reward. [Birchcliff Energy Ltd.]
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Q: Hi 5I
Regarding anthony questions , Not withstanding that BIR is surely in the doghouse, is it worth a second look now and at what price would you consider it worth the risk/reward.

CEO stated in interview yesterday that the lower dividend was sustainable for next number of years....opinion? Is this the ceo responsible for reinstating initial dividend?


Thx
Jim
Asked by jim on January 19, 2024
5i Research Answer:

The big dividend bump was January 2023 and the CEO transition wasn't announced until October 2024. Even with the cut, being in the doghouse has already put the yield back to 8.2%. We are quite disappointed in how this was all implemented, and investors are angry. But we admit it is getting interesting here, and we think $4.50 would set up a good floor with possible good gains under different conditions. Fundamentals have not declined as much as the share price, which can create opportunity.