I am selling the rest of the BP units in an RRSP account today. I have kept the units I hold in a taxable account. I see a downside risk if they have to cut the distribution. And I don’t hold out much hope of any near-term big upside surprise such as much improved same store sales or a much improved outlook from the company. If there is no distribution cut then the units will likely remain trading about where they are. To date they have used some cash on hand to maintain the distribution despite the payout being a little over 100%. Ultimately, they need to achieve some same store sales growth. And perhaps they will given that the Ontario economy is strong and Alberta is slowly improving. However the remarks from the owner of Jack Astor’s that were in the news yesterday are not encouraging.
In other news there is a tentative BREXIT deal but the U.S. market has not risen on that news.