The worst part of this cut was I predicated it back quite some time and took a lot of flack for it.
I am truly sorry that many investors to PWE got "taken" by the rosy management position of the distribution. I saw this happen with another Canadian Trusts last year and knew that wasn't a one time deal. I saw Trust management do a 180 run around unit holders and there was not a think the investor could do except sell the damn shares and move on.
PWE management were very deceptive in their guidance. Not a reason to keep the shares.
I sold out my 1,500 shares pre-market and as of this moment, am slightly ahead vs. current market price. When this bear-market rally knonks out and PWE pulls back some with the market, I might daytrade 1,000 shares here and there, but I'm not sure. Oher than oil continuing up, there's a lot of reasons that PWE could go back under $10 and I'm not interested to ride it down again right now.
Phoenix, your comments on this board have been very good. I'll continue to look for your postings when I can.
-PWE was due a pullback on technicals anyway.
-did ANYONE NOT anticipate a div cut regardless of management guidance?
-the div is still outstanding at the new levels
-pick a new target to buy in (I sold half of my holdings Monday at 11)
Management is hired to operate the company and provide guidance and direction to its owners the shareholders. The fact is that the company has misrepresented its intentions and as an owner if the employee doesn't have my confidence you fire them. Unfortunately while I think the prospects for this company are fairly strong they have lost my confidence and I will have to fire them. To this point management who are very well paid have struggled in the execution side , look at missed production, operating cost structure, inconsistent strategic direction, enough said.
it is troublesome that they cut the distribution after hinting at the fact that it would be safe with oil above $45. Moreover, they clearly have been hedging their output price, so the logical reason for cutting the distribution is to either pay down some debt or to amass cash for another acquisition.
I have loss over 100k in Canroys, the bottom line is it is to much of a risk and should never have been promoted as anything but a big huge gamble. We all get sucked in by the huge double digit yields. All of my losses have been because of chasing yields whether it is PFE, ACAS, or Canroys. the thing is it is very hard to make more than a safe 8% yield. If you are going to invest in a company that sports a 22% yield then buy the puts which will effectively reduce your yield to 6-8. There is no such thing as a free lunch take it from a guy who got wiped out of his nest egg. I learned my lesson the hard way, thinking of this thing as some kind of bond. I feel like a total douche bag.