Will be interesting to see where we close this Friday. Appears that PGH will not go anywhere till the EU mess goes on way or the other. I suspect that the banks fail and they leave the EU. Long run they will be better off and so will the EU. Once that happens we start heading back to 6.00 a share. This is a steal at these levels thru 6.25 a share. I suspect value investors have been bug hard for weeks now. I am in for over 4,600 shares. I do feel for the older buys above 12 a share. Just plain screwed.
Fortunately, I am not one of the investors you referred to who bought this stock at much higher prices, but I do own thousands of shares slightly above the six buck level. I feel quite comfortable that when Lindberg production in ramped up and Canadian transport issues are resolved in early 2014, not to mention high natural gas prices, then - and only - then will Pengrowth stock price appreciation bail out those who are now deeply underwater.
The fundamentals of this company are strong, the future look promising, and patience investors will be handsomely rewarded.
How do you see North American Nat gas and the Euro tied so tightly as to make that comment. Had they gone to Nat gas they wouldn't be paying money to the Mid east for Oil and their currency would stop being worthless. Nat gas can drive mid east oil down. Just need US auto makers on board. Selling in OKC at 1.07 a gallon today. Sure beats 3.45 for gasoline.
Macro events have a global effect. Called the butterfly effect. Also a small incident in one country can spread in ways not understood at the time. Also called a black swan event. In 1914 the assignation of a leader in Yugoslavia led to WWI. A small protest in South Africa 100 years ago startled a young Indian britches citizen. Years later he led India to independence from the British. There was a panic in 1907 over copper speculation. Smart money keeps an eye out for what may be minor issues and then places bets ( derivative trades AGIANST mortgages in 2007 ). I am NOT a oil bug so I don't take the whole "peak oil" stuff to hard. Old demand-supply curve. We had $10 NG prices a few years ago and look how much NG then flooded the market in a few years.
Nat Gas withdrawals
Yesterday's withdrawal was 145 bcf (billion cubic feet) – the 5-year average was 89 bcf and the previous record was 115 bcf in 2007.
Last week's withdrawal was 146 bcf – the 5-yr. average was 104 bcf – 146 bcf is the highest since 2003.
This sure looks like good news for Natural Gas Companies. Sure hope this one is in on that. I did read that they are using more Nat gas in Power plants. The upside to Nat gas in BP eyes should be that had they switched to Nat Gas the Gulf Oil crisis would have been much easier to deal with.