As you all know, I hold 10000 shares of this stock for just about two years now. I am the one who has bitched incessantly about the need for the secondary and whether PDC really needed the money to expand the rig count.
Well, the jury is in with the quarterly report. With these new rigs, earnings WERE DOWN by 30% yoy! Why? Because the extra rigs that PDC has built HAVE FLOODED the market in a classic boom/bust cycle of expansion. Something I was telling all of you the past year would happen. This has caused the rig day rates to drop by 20%. So, what does PDC decide to do with these rigs now? Now they are going to ship them to Columbia. COLUMBIA!?!?! Are you kidding me?
Well Hong Kong - I thought profits were SUPPOSE TO INCREASE with more rigs? Didn't you promise this?
I stand behind all that I have posted the past year. THE SECONDARY SHARE OFFERING WAS UNNECCESARY AND NEEDLESSLY RAPED US LONG-TERM SHAREHOLDERS AND CRUSHED THE PPS, FROM WHERE IT HAS NEVER RECOVERED. Even worse, it has DELIVERED NO INCREASE IN EARNINGS TO PDC. Oh, it allowed PDC MGMT to increase their salaries and perks/benefits.
SOMEBODY PLEASE TELL ME, A LOYAL SHAREHOLDER, what the phuck has PDC Mgmt done for us besides drive down the share price and the value of our investments?
Be like many others - look at this as a golden oppoutunity to average down yet again. In fact, the rule is "the lower it goes, the more you buy (or at least you say that you buy).
Once this is done, you have but a single problem - what to do if the stock doesn't recover until 2010. Your response then is that you are a value investor and you are willing to wait for as long as it takes to reach your average cost and sell.
If this approach doesn't suite you, then your a moron who should invest in index funds.