I though it was all peachy king with positive comments and writeups on pgh; yet selloff after selloff keep coming so my next question is #$%$? is going on...Is mangement telling the truth or cooking the books and why the weakness if it is all good?
I do not tell people (known or unknown) what, when, or how to buy, sell, or hold a stock...
What I attempt to do, with rare exception, is post my own reasons for taking action along with comments on the truths or false assertions others may post on this open message board.
Most people on this board by now, know something about PGH's History, to wit;
There has been quite a ride since the company converted from a Royalty Trust to Corporate business structure. My understanding is the conversion brought forward considerable Tax credits.. There are just over 500 + million shares outstanding and 500 million $s in the bank ( last report).. The money has been marked for full development of the Lindeburg Thermal Project, while the company continues to drill and pump other fields for oil and gas.
There was a real blood letting sell off, but the price has doubled after bottoming a year ago..
Management has prudently drilled two pair of thermal wells (Lindeburg) and assured the monthly dividend of 5 cents = to about 7% yield in these tested times will continue ( exactly as promised ) ...
Management was buying shares about a year ago, I read the dates and number of shares on line, but cannot relocate the link I used to prove this data now.. It might show up using the TE symbol instead of NYSE..
Bottom line: I can't figure out why so many smart people have leaned toward screaming fire about a correction or fuel gossip about the PGH management by casting doubt of imagination when it's absolutely clear that most of the 500,000,000 shares have found happy protected homes and are waiting the rest of the thermal wells to come on line..
Trading is to be expected even by those who hold the greatest risk or link to rewards.
Trading games do not reflect fair or clear upon the actions of management!
I for one have always proceeded my rosy comments with a time frame beginning with 2015 through 2018 so those like yourself wouldn't look for instant gratification.
Looks like I failed to get your attention.
Sentiment: Strong Buy
Here's the difference between traders (max) and investors (mental). This is an investor's stock. If you're a trader, good luck and all that, but you're in the wrong vehicle.. try plug, uvxy or any of another hundred day trader favorites. This is the Tortoise, not the Hare: but we all know who wins the race in the end.
Sentiment: Strong Buy
Jeez, have you been reading the comments and write-ups ?
PGH is still drilling.
PGH is still waiting for pipe and pumps and other material.
PGH still had some design to do.
PGH told us first steam is in less than 9 months.
PGH told us significant production won't occur until early 2015, at most a year away.
PGH was below 5, and is now near 6.
6 is a good price, considering we're still talking months away.
And when the oil flows, and they don't have the drilling costs anymore, that's when the cash flow jumps.
and that's when the stock price jumps.
anyone in is taking a chance owning right now.
anyone in is getting paid 4 cents a month, plus the 5% drip discount.
what if their original wells run dry ?
what if the sor ratio jumps.
what if they can't get phase 2 approved.
what if oil drops to 80 a barrel.
if everything comes together, we'll be rich.
but you can't whine about the stock price before production, this far out.
when they put out a release that construction is done, we'll get a jump.
when they put out a release that drilling is done, we'll get a jump.
when they put out a release that steam is being injected, we'll get a jump.
when they announce oil is flowing, we'll be around 10.
when we get our first quarterly report that doesn't include construction and drilling costs, we'll be low teens.
when we get phase 2 approved, we'll be mid teens.
but everything is still uncertain.
and uncertainty hurts stocks, and kills markets.
and if you don't understand that, you should buy bonds or bank cd's, or mutual funds.
If your serious max;
You have to decide, do you want to trade or invest?
Investing is about the future, a vision and it's execution.
Trading is about getting in and out, trying to catch a wave, (like a surfer) get in and out and not whip out..
The action taking place today does not prove a thing about the company or stock value in the future..
You're not alone, but it isn't just this issue that's stuck in the mud. ERF/HGT/PWE/SJT are all in the same rut. I don't know why, the company itself (along with those others) seems to be doing OK, but I just can't explain why investors are shying away from it, even with the fairly high dividend return.