I have been a holder of this stock since when it was in its high teens since 2008. It certainly has taken me through some rough times and it still is. What I didn't expect was the drop off of the NG price which is how mostly PGH makes its money. Granted oil has a lot to do with their business, this stock is tied more to the NG price movements than then oil ones.
That being said, let me share with you why I think this is still a long-favorable stock. Just like any other commodities when there is a violent one sided price movement, it tends to go to the reverse. Once hydraulic fracturing was widely used, NG prices started to tumble. There are two scenarios that are likely IMHO to happen.
1. NG will be adopted by certain industries as an important source of energy.
2. Fracking will eventually show its true nature (bad for the environment) and will be heavily regulated once the environmental impacts make its way to the general public.
I am not a big fan of fracking after doing a certain amount of research. Man made explosions underneath the earth's crust in search for pockets of NG will show its effects someday. Although there isn't any wide evidence of fracking being totally bad for the environment (maybe they are being suppressed), no one would say that it is good for it either. I believe the thousands of explosions underground will result in certain consequences that only time will tell.
Given the possibilities and fracking will be heavily regulated and that we have anti-oil reliance attitude. NG is the only viable choice. Wind, Solar, Ethanol, Coal, etc are all fine and dandy. But NG is the only viable alternative on a large scale that could compete with oil.
A lot of good news. Housing market is up. Unemployment is down. It doesn't matter if ObamaMama or Romnuts get elected our economy runs in cycles and I believe we are on the upside which means more demand for oil and ng.
Nat. Gas collapsed...I don't follow it too closely, but just looking at UNG (bad vehicle), NG is way up from May lows. If you add QE / inflation / switching from higher oil prices / turmoil in mideast (Iran) etc, the upside looks good. PGH is being hammered by pure short manipulation--end of quarter etc. etc.
Since PGH already cut its dividend, I think we've seen the worst...
Aside: If people would take externalities into account, gas obtained through fracking would be toast (poisoning of aquifers = love canal on steroids) and NG would rise accordingly.
"Fracking will eventually show its true nature (bad for the environment)".
frac'ing has been around for more than a few decades. when was the first time you heard the word? i bet within the last few years.