PENN WEST PETROLEUM LTD. T.PWT

Penn West: Why I'm Doubling Down

[makedonka]

Penn West's solid Q4 2016 earnings report came as a surprise to the market and investors rewarded shares with a 15% increase.

However, a downtrend in crude oil prices has caused a strong downtrend in PWE.

The global oil markets are going to need significant cooperation if we want to see these shares go higher.

With a long-term holding period, PWE is an attractive investment with a sizable risk/reward scenario.

I increased my stake in Penn West (NYSE:PWE) earlier this week because the market provided me with an opportunity to lower my cost basis. Crude oil has just experienced a renewal of bearish fundamentals, a change from what seemed to be rather neutral fundamentals post-cut by OPEC in Vienna back in late November. Inventories are clearly the large problem, but it's going to take a substantial amount of producer cooperation if we want to see E&Ps like PWE see strength. My holding period is for the long term and while I often take much shorter-term views on stocks, the internal progress this company has made lends me to believe the company is focused on long-term value creation.

https://seekingalpha.com/article/4057618-penn-west-doubling?app=1&auth_param=4i15t:1cd8kil:d6e2a5dcc2851368c0214398ae38274b