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Penn West Petroleum Ltd. Message Board

  • tlounsb2000 tlounsb2000 Jul 8, 2008 9:47 AM Flag

    still no satisfactory answer

    when the price of oil increased dramatically, PWE share price barely budged. Now that oil has dipped a bit, we go way down. Many have said there is no correlation to PWE and oil price. If this is the case, why are we dropping so much. Is it a concerted effort by short sellers? Some have said that PWE is sold to meet margin calls elsewhere. That doesn't seem to be a good argument because the share price of PWE hasn't increased that dramatically to make it that profitable to sell. Others say it is just general market conditions, that PWE will naturally fall in a falling market. That doesn't seem to be a good argument either because PWE has fallen more than the market. Moreover, the price of oil will remain high for years to come and our bottom line will continue to be profitable. Others say it's the tax liability issue that kicks in in 2010 that is weighing on the share price. That issue has been discussed an infinitum on this board for a year and it seems not to be an issue for the company has stated that it has enough revenue to pay out the dividend for years after 2010. The question then is, what is going on with the price drop each day if it is none of the above? And, in these financially troubled times, who would not want to invest in a company with such a great guaranteed dividend each month?

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