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Penn West Petroleum Ltd. Message Board

  • axel@wethink.de axel Apr 17, 2013 11:12 AM Flag

    Letter to IR

    Just wrote a letter to PWEs IR dept:

    "Dear Sirs,

    as an investor (not trader) I am very unsatisfied with the stocks performance overall.
    Not that PWE just overtook PGH as the worst performing independent oil producer TTM,
    today just a half year of dividends was eliminated. The other half the day before yesterday.

    If I buy a stock as an investor I have to live with ups and downs. But, and that is the point, your
    management is always talking about shareholder value, working for shareholders, dividends
    are integral part of the companies position towards shareholders. That's meaningless if a year
    of dividends is eliminated within days. If we go back to last years performance one needs tenths
    of years of dividends to recover.

    I expect the management to issue a new "letter to shareholders" commenting recent stock
    performance and future outlook giving reasons for their estimations.

    Secondly, I wonder, if the NAV is calculated correctly, why there's no large stock buyback program.
    Share price is $10 below NAV, I assume there are little possibilities where one can buy a dollar
    cheaper.

    Many of PWEs shareholders held Harvest Energy in the past. The went from the highs to the lows
    and were bought out with just a little premium not recovering all their losses. I can imagine that at
    the given share price, PWE looks like an attractive target, and might be "prepared" by market action
    to be taken over at only a little premium, buying it below NAV. Needless to say to me that selling a
    company below NAV would be irresponsible my management but that might be not clear to anybody.
    I personally would appreciate a statement that management of PWE is never considering such a deal.

    Would be great if you can share your thoughts about that."

    I can only urge everybody to do the same. It is not the share price that concerns me but the passive behaviour of management always stating they're working for shareholders. If everybody writes them that should put some pressure on them.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Although I am long PWE, I share your disappointment. The presentation yesterday didn't help matters fueling the fire of the question of the dividend and its sustainability.

    • Axel, I'm sure it made you feel better to communicate your concerns to them, but you are talking about share price declines, which they can't do anything about. The market is telling you something. You must listen to the market, not management. As far as writing letters and emails to them, well, go ahead but it's a complete waste of time. All you will get, if you get anything at all, will be the standard, generic canned reply thanking you for your concern and for taking time to write, and to assure you that management is doing everything possible to realize shareholder value, blah blah blah. You are looking for solace in words, but you should be looking at numbers instead.

      Sentiment: Strong Sell

    • I bought in low 10's and sold in mid 11's recently. I think we test the 2009 lows of 7, likely overshoot into mid 6 region, where it will be a great buy. I used to think 8 but the commodity selloff is just starting

      • 2 Replies to smathan75
      • I'm just curious how anyone can look at any chart (ANY CHART!) of this stock since it converted to corp status and make a comment about it being "a great buy". There is no precedent in this stock's history that supports your comment, it is irresponsible and just plain wrong. This POS is a long story of of steady consistent decline and reduced dividends (those wonderful safe dividends!). Own it at your own risk. Keep it at your own risk. Make the fatal mistake of adding to your position like SpinDopey and you will know the meaning of poverty. It is very true that when it enjoyed CanRoy status, it was a great stock, as were all of the CanRoys. Times change. Investors need to change their perceptions for the times.

        Sentiment: Strong Sell

      • axel@wethink.de axel Apr 17, 2013 11:20 AM Flag

        My impression is that PWE is "under following" commodity prices when they tend up and "over following" when they go up.

        Every company CEO would lick his fingers if he can buy one dollar for 40 cents. This is approximately the price you have to pay for one PWE dollar. Why don't they do it? Even PGH suspended it's DRIP because they don't want to gift their shares below NAV.

 
PWE
1.93-0.09(-4.46%)Mar 2 4:03 PMEST

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