I feel better about PGH after reading the conf call transcripts. Its not a bed of roses, but the plan seems
to make more sense now.
They said they have the financing in place, after receiving weyburn money, to last through 2014.
That they could drill other wells earlier, but they dont like drilling wells that dont have a long life. They said with short life wells, they can't drill them fast enough.
Lindburgh is projected to have a long return.
SOmeone with 10,000 shares said he'd like to see the div cut to .03, and use the other cent to buyback. They said no way renee, that they had enough cash.
they agreed 512 million shares was a lot.
they said they had several more properties up for sale, and expected to get good prices for them.
someone asked about joining with one of the new pipelines, and they said these were big pipiline companies (not sure of the inference)
they said shipping by rail adds costs 10 bucks a barrel.
They said they had a lot of existing pipes near their fields, and were comfortable with what they are doing now, which is a combination of pipe, rail or train..
They said, like I noted, that Lindbergh is 1.5 years away, and a lot of people dont want to wait.
They have, or are working on, a gas fired electricity plant. Its several megawatts. It will power pumps, housing, and will be a cheap source of elect, as it runs on their gas. VERY INTERESTING
My opinion now is that the stock price is low, primarily becasue they emphasized lindbergh too much. That after NAL, things should have been nice for a long time. That when they started emphazing lindbergh, it made the company seem semi desperate, and also will be a big cash drain.
That it will be relatively safe to wait for lindbergh, and collect a monthly div, and if things go as planned, we'll see a gusher in the stock price.
but nothing is guaranteed.
I'm done fretting, for now.
I read through the transcript and they have the fundamentals in place with support from asset sales, future earnings, coh, loc and their future expansion program to continue in the black with confidence. They have confirmed the divi through several events and are not issuing new securities. They too, owning stock are fellow shareholders and in turn benefit with the rest of us as the pps moves higher. PGH is way oversold on any valuation no matter what model is used to calculate. RSI is in the 40's. The selloff, capitulation, momo dark pools are over. Should gap up at the bell. I belive the overall focus of the market will now be back to earnings capability, which is the basics of why we are here. 11% divi plus trending higher, I'm content to add and hold position.
Can u the link that says they are done issuing new securities. That is my biggest concern right now. Everything else I like about this stock im just worried there going to contiune diluting the shares.
Well, I'm going to hold until I at least get some of my capital back, but then I'm not buying any more Canadian issues--probably ever. The last 2 years have been an unbelievable disappointment. Last year's warm winter didn't help. The ones I have (ERF/PGH/PWE) are in a long-term depression and if I had to liquidate right now, I'd never make up the loss. One of the ironies with Canada is, as much in the way of petro assets as they have, they're boxed in. The Rocky Mountains prevent them from moving much to their west coast and their eastern provinces are so far away, it's actually cheaper to import oil in Nova Scotia and Newfoundland, so their biggest customer is the US. And if things go sour here and demand drops off, it directly affects them as a result.
I HOPE! If I had to sell right now, I'd incur an $18K loss which would just about wipe out the total of the dividends I've collected. The monthly payouts have fallen off to little more than pocket change and are just a fraction of what they were only a few years ago. This issue could use some good news--and then results to back it up.
I feel for you . Having been a investor for over 30 years I have at times entered at the wrong time into securities . This is a good company and time will erase your losses more then likely just don't overweight to be safe . You can always forgo the qualified status of the dividend and take a tax loss too then hold the newer shares ( don't forget the wash rule . ) If you can afford it buy your position now and wait 31 days then sell the older shares . Of course that is if your position is already long term or held over 1 year . Then you can take profits without paying taxes until the 18 k is used up and wait for these shares to double which they will in time while your paid .