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Penn West Petroleum Ltd. Message Board

  • lakenonapatriot lakenonapatriot Aug 23, 2013 10:01 AM Flag

    Terse Press Release - Too Vague

    msears99, we do not know if Roberts has kept his word.

    How much headcount reduction is his, how much prior?

    A $25 million charge in Q3????

    How much in severance? What else is buried in this number? Are we hiding something?

    This was a poor press release and evidence of typical horse carp management. When you see management does not come clean, you must assume they are hiding something.

    Roberts will have no, none, zero credibility with the analysts until they get "visibility".

    Self-serving, vague press releases are not going to do it.

    You want the market's respect Roberts, then earn it. Start with coming clean. How much head count reduction; how much in employee severance / termination; what else is buried in the $25,000,000.

    Work it out longs. How much per head? Something stinks.

    Still long. This company is an easy fix. I am not sure this is the guy to do it. Everything so far says he is NOT.

    Sorry longs. I want this company to succeed as much as anyone.

    Just call it as I see it: this guy blundered on the press release.

    Turning this company around should be a lay up.


    Sentiment: Strong Buy

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    • How is it vague?

      After layoffs, they now have less than 1600 full-time employees down from 2150 at the start of 2013. They got rid of their CEO as well and a few other high ranking executives. The $25 million charge is peanuts.

      So let's all do the math. 2150 - 1600 is 550. So let us assume they've gotten rid of 550 employees. That comes out to severance packages of about $45,454 per employee. Obviously each employee didn't get that large of a package. The fired executives probably ate up about $5 million of that $25 million easy.

      This isn't a negative for's a positive! Most likely it could signal an asset sale which is why they are reducing work force, but that will come out in time.

      Pretty simple if you read the info provided and do the math.

      Sentiment: Hold

    • News facts fit the pattern expected if you are fixing up a property before putting it on the market or just making home improvements. If you were looking to buy a company like PWE, you would prefer to have it cleaned up of excessive labor costs and less attractive properties and projects. So, I think this news should strengthen the group that believes the company is now more attractive for purchase.

      Sentiment: Buy

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