Julia's coding blog - Practice makes perfect

From January 2015, she started to practice leetcode questions; she trains herself to stay focus, develops "muscle" memory when she practices those questions one by one. 2015年初, Julia开始参与做Leetcode, 开通自己第一个博客. 刷Leet code的题目, 她看了很多的代码, 每个人那学一点, 也开通Github, 发表自己的代码, 尝试写自己的一些体会. She learns from her favorite sports – tennis, 10,000 serves practice builds up good memory for a great serve. Just keep going. Hard work beats talent when talent fails to work hard.

Friday, April 10, 2020

OVV.TO 100 share investor - Naive Canadian investor Julia

April 10, 2020

Introduction

It is so interesting for me to do research and I do not know what stocks I will purchase until I noticed that I purchased 100 share OVV.TO and the market change is up over 60%. I need to read the statements and look into what industry OVV.TO is up to.

Case study

I have to spend 10 to 20 minutes to read about OVV.TO stock. Questrade.com has a nice feature for me to look into the company and volume/ price day by day.

A good investor should read ...

I copied the news from Questrade.com dated March 9, 2020.

DENVER, March 9, 2020 /PRNewswire/ - Ovintiv Inc. ((NYSE, TSX:OVV) today provided additional information related to its strong capital structure and liquidity. In addition, the Company has great flexibility to quickly adapt operations to changing market conditions.

"In addition to our liquidity, we have substantial operational flexibility and a track record of driving cost reductions across the business," said CEO Doug Suttles. "We will be reducing our near-term capital spending to ensure we maintain free cash neutrality in the current market conditions. When combined with cost savings, we are confident that we can do this while maintaining the scale of our business."

Balance Sheet & Liquidity:

$4 billion credit facilities recently renewed through July 2024. No reserve-based, cash flow, EBITDA lending covenants or minimum credit rating requirement. The facilities are based on book value only (not market capitalization) with a maximum ratio of 60% debt-to-adjusted capitalization (at year-end 2019, ratio was 28%). The capitalization calculation adjustment includes a fixed $7.7 billion add back to capitalization. Full terms can be found as an exhibit to the Company's Form 10-K.
Current liquidity is approximately $3.5 billion, which represents the $4 billion credit facilities plus cash-on-hand, less the current commercial paper balance.
OVV is currently rated investment grade at BBB.
Approximately 80% of total long-term debt is due in 2024 or later with a weighted average bond maturity of approximately 10 years.
The Company has significant flexibility to manage the late 2021 and 2022 maturities, including the use of the credit facilities.

Actionable Items

Based on my research, now OVV.TO is better than Ford in terms of credit rating. In other words, OVV.TO is BBB, but Ford is below BBB which is high yield bond.

My biggest concern is if OVV.TO will go bankrupt or not. Since 2 billion credit is secure before 2024, I am sure that I will not lose all the value of initial investment.

Otherwise it is ok for me to wait a few years to come back to $10 to $15.00 dollars. I am investing for my retirement and hopefully I can learn better and have more experience as an investor later on.