RE:Peyto up nicely today when most are downSportster, I do share similar wishes with you and try to invest accordingly on both value stocks and growth stocks.
Peyto is a good value stock in my opinion and I own it for the last 4 years. I just wanted to compare its performance with my best performing growth stock I collected in the same period, namely Microsoft.
MSFT stock price is now 3,76 times higher than that of Jan 1, 2018. It has an impressive P/E ratio of 37. Price to sales of 14.
Peyto on the other hand was trading at 14,02 CAD on Jan 1, 2018. It has now P/E of 14. Price to sales of 2,5 only.
Looks like MSFT is an obvious killer.. But NOT for sure! For simplicity, I will not disclose my cash flow in every detail but rather I will use a simple algorithm to show how Peyto can be a good value stock -better than most growth stocks- for many ordinary investors.
Dollar cost averaging is one of the most basic investment strategy of accumulating stocks for these investors, mostly able to invest a fixed amount, montly. I created a table comparing two investors: one who buys only PEYTO vs other buys MSFT only by the same amount of dollars at the first day of each month of the last 4 years (Jan 1, 2018).
Ignoring dividends.., guess the result?
Both stocks have more than doubled the investment! Both stocks almost gained the same roi percentage, no significant superiority to eachother.
There are many reasons behind this result to discuss. But my conclusion is, IMHO, PEYTO was a really a good value stock not missed for the last 4 years if you had a sound investment strategy :)
I really dont own any other O&G stock and didnt check this kind of other peer stocks comparison..
I like to see Peyto >10 per share for the rest of 2021 and much more for next years. But I am rather interested in recovered regular dividends for a better spending and more savings.