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Thursday, September 20, 2012

Petrobank - A Value Unlocking Spin-off

My latest Seeking Alpha article:

I bought my first shares of Petrobank Energy (PBEGF.PK) in June 2010 after listening to CEO John Wright speak at the 2010 Petrobank Annual General Meeting. I've been buying more shares on a regular basis ever since as I've gotten more comfortable with the company and its management team.
Petrobank was and still is (in my opinion) a terrific combination of these items:
1) A CEO who has a huge chunk of his net worth invested alongside shareholders
2) A CEO focused on per share value creation and not empire building
3) A very attractive valuation
4) A solid balance sheet
5) A free option on a potentially game changing technology called THAI
I haven't made any money so far on my Petrobank investments that span a period of two years. In fact, the only reason that I'm not down considerably is because I have been regularly buying more and lowering my average acquisition cost.

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