looks like a falling knife but it has value. Given the book value or asset value some larger oil company might just make an acqisition bid. Two tv analyst in the past couple of months have commented. one said there are better oil and gas investments and stay away. the other said he was buying more as it has quality assets. From what i can tell nothing wrong that $100 oil and $5.00 gas would not fix. As long as pgh can hang on for better commodity pricing and not have to sell off too much of its asset base think its worth some higher risk speculation.
In the present casion atmosphere and gambling ferver with the stock market, and the pending imminent re-installment of the bum bum POS in downtown WDC, any bet is just that, a bet in the roulette of Vagas.
If anyone could tell you that it is a sure win to making money, gosh he/she won't be around to tell you that.
Alternatively, the good old way of the super rich like those with $15M net worth min. is to buy the blue chip of the blue. Those, like the MCD, IBM, XOM would 'proabably' 'guarantee' a stable price with perhaps a 2 to 3 % increase via divvy each year.
Be sure to find a discount broker at $3.79 a trade to save some nickle and dimes though
I own 20,000 shares of PGH which are underwater and I don't plan on investing any new funds unless the price declines further. I think it's to soon to back up the truck.
Pengrowth's future prospect are dependent upon the Lindberg project. The whole company is being transisitioned to long life and high net back thermo heavy oil production. The transisition costs will exceed one billion and management is comitted to selling off non-core conventional assets to finance the transisition which won't be complete until 2018.
Sentiment: Strong Buy
a few things that caught my attention from their latest presentation.
Lindbergh is very well located, with four heavy pipelines in close proximity that all
terminate at Hardisty. This is a main hub in Canada, with massive infrastructure
plans which include additional storage, unit train loading and the planned start of
the Keystone XL pipeline
– 2013 annual average production of 86,000 boe/d assumes mid-point of guidance
– WTI US$90/bbl oil with a 9% discount for light oil and 23% for heavy oil and AECO Cdn$3.50/Mcf and par FX
– * Using mid-point of operating cost guidance
– ** Includes $0.46/boe of non-cash G&A