Kevin O'Leary nails it.

[the_only_turek_fan]

http://www.theglobeandmail.com/repor...ticle26166798/

Shame on those who voted for the NDP.

[the_only_turek_fan]

And for the record.....we all saw this coming.

[White Out 403]

Capital flight is the economic boogeyman for Conservatives to terrorism and social policy.

[PepsiFree]

Shame on those who listen to Kevin O'Leary.

http://www.theglobeandmail.com/repor...service=mobile

People in the investment community are turning on him over the performance and management style of his funds

“Just because you’re on television doesn’t mean you’ll be good at managing money,” says McQueen, the CEO of Wellington Financial LP. “When a non-trained money manager shows up in the market…if it goes badly...

Kevin O'Leary is pretty rounded criticised as a joke. I don't think anyone who voted for the NDP or anyone who is involved in anything important thinks much of what he has to say.

[OMG!WTF!]

Originally Posted by PepsiFree

Shame on those who listen to Kevin O'Leary.

http://www.theglobeandmail.com/repor...service=mobile





Kevin O'Leary is pretty rounded criticised as a joke. I don't think anyone who voted for the NDP or anyone who is involved in anything important thinks much of what he has to say.

So in your opinion it's a good idea to review royalties a this time?

[the_only_turek_fan]

O'Leary is just the messenger.

Increasing corporate taxes by 20% at a time when oil companies do not have enough cash flow to fund new projects is so beyond dumb. it defies common sense.

The drop in oil prices is not Notley's fault. But her idiotic ideas are not helping anyone right now and is making the situation way worst.

[EldrickOnIce]

Originally Posted by PepsiFree

Shame on those who listen to Kevin O'Leary.

http://www.theglobeandmail.com/repor...service=mobile





Kevin O'Leary is pretty rounded criticised as a joke. I don't think anyone who voted for the NDP or anyone who is involved in anything important thinks much of what he has to say.

So you don't agree that stability and certainty in economic policy is important, particularly given the current price of oil?

[PepsiFree]

I don't think there's any evidence to suggest that the NDP are making things any better or worse at this moment. That would be extremely premature and really just indicative of bias.

I think Kevin O'Leary is not a worthwhile businessman, and I would take the Oil companies positive word on Notley as being more representative of the impact on the industry than Kev's ill-informed opinion.

Hopefully for his sake Dragon's Den is still in syndication.

[Looch City]

Kevin O'Leary is basically the Canadian version of Donald Trump.

[White Out 403]

You know that the conservative cheerleaders on this forum are desperate when they look to celebrities like O'Leary to try and crap and dump on Notley.

Can anyone find out what Russell Peters thinks of Notley? Maybe we should get a couple famous hockey players in on this too. O'Leary isn't a money manager, he's a bimbo shill; the investing worlds Kim Kardashian.

In answer to the ridiculous question about raising corporate taxes by 2% (i know 20% sounds scarier so go ahead and use that number if you like) is a possibly bad idea because of the state of oil...or royalty reviews... yes. Great idea. Business should pay their fair share. We shouldn't get involved with a race to the bottom. We have lots of oil, and that demand will eventually go right back up as well as prices. When that happens I'd like to make sure we aren't getting bent over a table.

[EldrickOnIce]

Originally Posted by PepsiFree

I don't think there's any evidence to suggest that the NDP are making things any better or worse at this moment. That would be extremely premature and really just indicative of bias.

I think Kevin O'Leary is not a worthwhile businessman, and I would take the Oil companies positive word on Notley as being more representative of the impact on the industry than Kev's ill-informed opinion.

Hopefully for his sake Dragon's Den is still in syndication.

How about the IMF as a source? They suggest policy induced uncertainty is bad.
http://www.imf.org/external/pubs/ft/...3/03/bloom.htm

High uncertainty historically coincides with periods of lower growth. The recent pickup in uncertainty increases the likelihood of another global recession. It is difficult for policymakers to overcome the intrinsic uncertainty economies typically face over the business cycle. However, uncertainty about economic policy is unusually high, and it appears to contribute significantly to macroeconomic uncertainty. By implementing bold and timely measures, policymakers on both sides of the Atlantic can reduce policy-induced uncertainty.

I didn't actually think there any debate on this topic.

[PepsiFree]

Originally Posted by OMG!WTF!

So in your opinion it's a good idea to review royalties a this time?

They aren't reviewing royalties at this time.

Originally Posted by EldrickOnIce

So you don't agree that stability and certainty in economic policy is important, particularly given the current price of oil?

Logically there is going to be uncertainty with a new government. Had Wildrose been voted in there would've been uncertainty. Shaming Albertans for voting in anyone note conservative seems odd. They put us billions of dollars in the hole.

[Senator Clay Davis]

Originally Posted by Iggy City

Kevin O'Leary is basically the Canadian version of Donald Trump.

Not even close. Trump is hilarious in a totally over the top, carnival barker kind of way. O'Leary is just a straight up #######.

[temple5]

I like KO and am 100% of the same mindset that if a stock isnt paying dividends then dont buy it because most of the market is a shell game.

In this case though he is at least 95% wrong. Unless oil comes back to the 85-100$ range before the next election we wont really know how if any the Ab economy has been adversely affected by the NDP policies.

And if oil goes to 65 next year and capital returns will then the NDP be responsible for the influx in capital?

[OMG!WTF!]

Originally Posted by PepsiFree

They aren't reviewing royalties at this time.

Yes they are. So in your opinion is that a good idea? You're smarter than Kevin O'Leary so let's hear your opinion.

[firebug]

Originally Posted by the_only_turek_fan

O'Leary is just the messenger.

Increasing corporate taxes by 20% at a time when oil companies do not have enough cash flow to fund new projects is so beyond dumb. it defies common sense.

The drop in oil prices is not Notley's fault. But her idiotic ideas are not helping anyone right now and is making the situation way worst.

As the individual in my firm who does all of the project valuation modelling I thought I'd take a look at some of our historical approved projects to see how much of an impact the tax change makes...

10% Tax Rate: IRR 14.2%; PVAT7% $2,427.4MM
12% Tax rate: IRR 13.9%; PVAT7% $2,378.2MM

So a while a 20% tax increase sounds like a big bogeyman, it only impacted our PV by 2% (What a surprise ;-). A change that small is unlikely to affect project approval for all but the most marginal of projects (which likely wouldn't have flown anyways).

Those who are trying to blame the NDP for the lack of corporate investment in the current economic climate are barking up the wrong tree and are displaying their lack of real-world experience in these matters.

[DuffMan]

Does the existence of this thread mean the "Layoffs in the OilPatch" thread will go back to talking about layoffs in the oilpatch?

[CaptainCrunch]

While the NDP has stated that they're holding off on changing the royalty structure for 16 months, talking to a couple of friends of mine, that delay doesn't do anything but extend the uncertainty by the patch. 16 months means relatively little except that the bigger companies are going to hold off on making any kind of bold moves Mac-T style because they don't know what 16 months would bring.

The smarter move by the NDP would have been to extend the current structure until Oil reach a minimum price and stayed over that mark for a 6 month period.

It was a tepid extension.

[PepsiFree]

Originally Posted by OMG!WTF!

Yes they are. So in your opinion is that a good idea? You're smarter than Kevin O'Leary so let's hear your opinion.

Sorry, you're right, the royalty rate just isn't changing soon (until 2017, I misread it as the review not until 2017).

There's no need to be condescending. "Well if you're soooooo smart" isn't a good way to have a conversation. In my opinion though, yes, the finances look rough enough that a review of everything should be in order, including royalties. When you walk into a mess you have to take account of anything and everything to make sure it's of benefit to you, not of detriment.

[OldDutch]

Originally Posted by PepsiFree

I don't think there's any evidence to suggest that the NDP are making things any better or worse at this moment. That would be extremely premature and really just indicative of bias.

I think Kevin O'Leary is not a worthwhile businessman, and I would take the Oil companies positive word on Notley as being more representative of the impact on the industry than Kev's ill-informed opinion.

Hopefully for his sake Dragon's Den is still in syndication.

I would be careful on this. You are right that the public message from the sector is one of teamwork. However, from my personal conversations the inside talk is a bit more nervous. Again, that is personal opinion of those individuals, but I don't think folks by and large at the oil companies are totally onboard and happy with this going through.

You can shoot Kevin all you want, but he did say a few critical items that speak to the current issue Alberta and Canada is facing. One is the pipelines. He is bang on. All governments in Canada are to blame, especially Harper. He could have played the national interest card and rammed it through. However he wanted to become the savvy politician and as a result nothing has been built. A lot of the current WCS discount could have been avoided if he acted. As for Notley, her play nice with Quebec was a mistake. If she thinks being diplomatic with Quebec will get her anywhere she hasn't read history. This is only going to further the delay of building our own pipelines we need to get competitive pricing.

The next part is on investment waiting on certainty. He is correct there. I do know exploration work in this city as one person told me "15 years ago levels" right now. I do know projects have been shelved. Is that all on the NDP? No of course not. The price of oil has a lot to do with it. However, why would someone have the incentive to build now? These companies are long term players, and sitting on their hands for 2 years is a wise decision. In the meantime many jobs and investment sit dormant until the certainty returns in both the market and the tax regime.

That was Kevin's point. Why give less incentive to companies to invest at a time when more is needed. The idea is fine, but the timing is completely wrong. As a result I am sure more than one job will sit dormant while the companies wait and see for 2 years out. The oil is going nowhere, the jobs can wait. As such Notley is hurting Alberta, and it doesn't matter who says it the message is correct.