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Friday, August 26, 2011

Another Win for the Canadian Value Investor !!!

Beaten down by Mr. Market.  Petrobank cut in half, other unconventional producers kicked as well.

But a couple of bright spots. 

Got out of Arcan at $6.90 after getting in at $4 in the spring on the Crescent Point news.

And now Hathor gets a hostile offer from Cameco for $3.75 which is quite a bit better than my $2.60 entry here:

Hathor Exploration — How Long Until It Is Acquired?

Some additional cash (sold Hathor at $3.90, market thinks offer too low) now available to average down on Westfire/Petrobank/Novus/Skywest/PennWest

Details on the transaction:

Cameco Offers to Acquire Hathor Exploration at 42% Premium to GuruFocus Estimate

7 comments:

  1. You haven't posted or written about Novus, Skywest, Petrobank, or Westfire in awhile......with all of them reporting 2nd Q results.....was hoping to hear your latest perspective given the depressed stock prices in all 4 cases.

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  2. Thanks for the comment.

    Story has changed on any of them from what I can see. And when does a business usually change from one quarter to the next ? They all have the same asset bases, except Novus and Petrobank both continue to add properties that they seem to like. And I still think $80 plus oil is our future.

    So just sitting and waiting. Expect that the end of 2012 this entire bunch could have doubled from here.

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  3. Thanks.....do you still feel like the best approach if I like Petrobank, Novus, and Skywest is to split funds between 3.........or would you include Westfire, Pennwest, etc.....thanks.

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  4. I think it is personal preference and how much you have to invest. I think I'd be inclined to split it over all five of them. I believe them all to be 50 cent dollars if not even better than that.

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  5. Hi Devon,

    I didn't notice it in any of your commentary but Petrobank is buying back shares. Quite a significant event wouldn't you say?

    http://www.petrobank.com/wp-content/uploads/2011/09/PBG-2011-09-12-PressRelease.pdf

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  6. Thanks for the comment. I'm covering Petrobank through my newsletter, so most of what I have to say on recommendations is going out to subscribers weekly. Last issue included an interview with the Petrobank CEO.

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  7. Alright, I'll have a look.

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