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


  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.

  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.

  3. 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.

  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.

  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?

  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.

  7. Alright, I'll have a look.