Another Hit!
Second stock from my old trust-based portfolio: Petrofund Energy Trust (PTF). No worries, though since it was bought by Penn West Energy Trust (PWE) on June 30, 2006. That being said, we will discuss Penn West instead of Petrofund.
Penn West, with its acquisition of Petrofund, has doubled its debt load. However, it has also doubled the assets of the company. In addition, the properties and development efforts underway should continue to be quite profitable through 2010 (meets my goal of decreased portfolio churn).
Around the recent closing price of $40 per share, Penn West is returning slightly more than 9% via its monthly distribution. I intend use upcoming price dips as a time to establish my position. It is important to note that elections are nearing and energy prices typically drop before elections. And who says politics and big business aren't related?
Here is a great blog that provides some more background on Penn West and CANROY's as a whole.
Disclosure: I do not currently own PWE.
Penn West, with its acquisition of Petrofund, has doubled its debt load. However, it has also doubled the assets of the company. In addition, the properties and development efforts underway should continue to be quite profitable through 2010 (meets my goal of decreased portfolio churn).
Around the recent closing price of $40 per share, Penn West is returning slightly more than 9% via its monthly distribution. I intend use upcoming price dips as a time to establish my position. It is important to note that elections are nearing and energy prices typically drop before elections. And who says politics and big business aren't related?
Here is a great blog that provides some more background on Penn West and CANROY's as a whole.
Disclosure: I do not currently own PWE.
posted by Nate at 5:42 PM
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