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Peyto Exploration & Development Corp T.PEY

Alternate Symbol(s):  PEYUF

Peyto Exploration & Development Corp. is a Canadian energy company involved in the development and production of natural gas, oil and natural gas liquids in Alberta's deep basin. The Alberta Deep Basin is a geologic setting situated on the northeastern front of the Rocky Mountain belt in the deepest part of the Alberta sedimentary basin. It acquired Repsol Canada Energy Partnership (Repsol Assets), which included around 23,000 barrels of oil equivalent per day of low-decline production and 455,000 net acres of mineral land. The acquisition includes five operated natural gas plants with combined net natural gas processing capacity of around 400 million cubic feet per day, 2,200 kilometers (km) of operated pipelines, and a 12 MW cogeneration power plant. These assets include Edson Gas Plant and the Central Foothills Gas Gathering System. The Company has a total proved plus probable reserves of approximately 7.8 trillion cubic feet equivalent (1.3 billion barrels of oil equivalent).


TSX:PEY - Post by User

Comment by Canoutchieon Apr 20, 2012 8:50pm
194 Views
Post# 19819081

RE: RE: RE: Reserves Valuation??

RE: RE: RE: Reserves Valuation??

You might want to consider dipping your toes into PEY-T right now, as I have been doing recently.

I've had PEY-T on a watchlist for a while, on the recommendation of a coworker.

As we all know, the selling has been pretty strong over the past few weeks.

So, over this past week, I've purchased a few hundred shares in the low to mid $15's

I'm now going to wait a bit, to see if this stock begins to form a bit of a base around this level. 

 

Honestly, "sell in May" has become such a cliché.

The real selling in the market related to the "sell in May" philosophy seems to have pushed itself forward by about 4 to 6 weeks (i.e. late March/early April).  As a result, there may not be much more downside related to the "sell in May" crowd.

 

Given this, you may want to slowly start accumulating your position now.

After all, this appears to be the depths of despair for Natural Gas stocks.

However, don't back up the truck just yet, as there could be a bit more downside.

That's the risk in investing.  Also it depends if you are short-term or long-term

 

It's funny how market psychology can change so abruptly.  A few months ago, PEY-T was trading in the low $20's, and several analysts were considering this a "buy".  I know we've had a warm winter, which affected supply, however most analysts were fully aware that low Natural Gas prices and abundant supply issues were likely to persist throughout 2012, yet they still considered PEY-T a "buy" in the low $20's. 

 

I'm not projecting a return to the $20's by next week, nor by next month... but longterm (next year), I believe that PEY-T will rebound from these levels. 

 

Good luck to you.

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