It's me. Ohio Bear's partner in shorting. Mr. "The market is open which means its a good day to short PWE". Well folks, I've now reviewed the quarter's results, reviewed the conference call, did some of my own calculations. Long and short is I just closed all my short positions. I tentatively like what the management is now doing It's starting to show some fruit. Very small pieces of fruit but I can at least envision where he is going. I give him credit. I'm not ready to go long but I think at 8 we have seen a bottom. I did well shorting but Im out now. I would be cautious here if I was short. I think the early morning low may have been a reversal point.
ha ha ha ha. Look at the book value of nortel or virtually any mortgage company before they went bankrupt. Book value has little to do with the value of the company particularly here where land acquisitions are carried on the books at acquisition values which are now well above their true value
I wouldn;t call it "greedy" to be short. Look if your life depended on it, would you bet from this price that the stock is going to go down or up. I would bet it's going to go DOWN. Why?, THe company is effectively bankrupt. It's production is sinking, it has more debt than assets (don't tell me about book valuation), it gets minimal benefit from the increase in prices since most of its production is already hedged. I keep saying this over and over. I said it at 20, I said it at 18 I said it at 15 I said it at 10 I say it know. And in each instance someone has come on this board and said, "youll be sorry you are short". I have yet to be sorry. In fact I have yet to feel even a bang of sorrow. And I shall remain short until this makes its inevitable descent to 0
You are wrong. Most of PWE's positions are hedged which means the increase in price won't do anything for them
yes instead of going clockwise while being flushed down the toilet it will suddenly start going counterclockwise while being flushed down the toilet
Yes the good news is that current management is getting fired
If you really think thatt is what they are doing why come out with that statement at all. Why not say "dividend could be in trouble"
The problem is that their asset value as booked is about 40-60% overstated. Look at what they are getting now for the assets they are trying to sell. Substantially less than the book value of these assets
Tell me exactly what you see happening that will cause any appreciation in this stock anytime in the next 2 years. They are selling assets at less than book. Its production continues to decline, Oil prices will continue to fall. What do you look at with this stock and say "Yes have to buy it now".
I heard the same thing when Nortel was in its death spiral. "Oh look at the book value". Oh it will recover. "Oh its Canada's largest tech company". It doesn't matter. PWE has the same financial matrix as Nortel. Way too much debt, Assets over valued on their books, terrible management -its all there folks for you to see. People who think this is going to get sold are living a pipe dream. If it gets sold it will be in a bankruptcy or receivership or whatever they do in Canada. It's all right there.
And let me guess Nortel. Is going back to 100. You are blind to what is going on. They can't get rid of assets for anything close to book value. Their assets are overvalued on a book basis by more than 40 percent. When you take this into account. The horrible mismanagement the unsustainable dividend no one is going to buy this company unless it's in a bankruptcy sale for pennies in the dollar. I've been short for months. Just shorted more shares at 725. I slept fine last night.
Explain why you blame this on the shorts. Why is betting the stock will go down worse than betting that it will go up. When you take a long position you are betting that the stock will go up. That's your analysis. Why then should someone whose analysis leads them to believe that the stock will go down be unable to place the identical bet you just made. In the abstract it is no different than betting on an over under in a football game. The reality is you just bet on the wrong side of the trade because you are most likely an incompetent investor. Don't go around blaming the people who made the correct bet for your incompetence
Ive been posting for months that you can short this stock to 0 without any fear. Folks learn how to read a balance sheet. This company is bankrupty and the stock is headed to 0. Its a plain and simple as that.