RE: Peyto's Technicals It's when a sector is in critical condition it is the time to build a position.
I do not think PEY will trade down to $6 like in 2009 but $10 is certainly a possibility.
Now that the futures strip is almost all under $4 for the next 3 years (NYMEX), it makes drilling investment almost no economical sense. Now the big guys are still flooding the markets with new production at rock bottom price in order to squeeze the little ones. As long as the Chesapeake and Encanas of this world continue this strategy, stock prices will continue to erode.
Remembering the production profile of a horizontal well being substancialy shorter than a vertical one, it's a matter of months before results are obtained.
Bought today the last shares I sold at $23 a few months ago. I just hope DG2 won't wait as long as DG1 to announce a scale back in Capex. It makes no sense, for whatever reason, to develop new production to sell it at $1.65/GJ on the Alberta spot market.
Nothing is permanent, better pricing will come in the future...