Painted Pony Pete Ltd PDPYF

RE:RE:NICE

[bigreturn11]

roscoe74 wrote: I have made 4 significant buys in the past week. Although I am not immune to that sinking feeling when catching falling knives,PONY's massive resource and low operating costs will turn the corner sooner than later.

The fact is that when the tide turns, retail investors will be trampled by the smart money and be left standing on the dock waving bye-bye as the good ship PONY sails without them. I have seen it roar from $7 to 14 and, last year from $3 to 10. Better to take the rough ride now, at $1.40 than miss the boat when the smart money pulls the trigger.

Macro indicators point to a significant increase in demand for gas and the wait, while rough is worth it.

There is minimal longevity risk when the producers go into self funded operation and preservation mode. The best part is that the many of my clients in Western Canada are doing the same and waiting for supply to curtail, catalysts and better pricing before further growth. Sounds like all upside to me in this market for the producers that can weather the storm. 

Regarding catching the falling knife - when it comes to buying excellent companies trading at a discount similar to this, it’s more so buying on discounts rather than catching the falling knife. Buying dollar bills for $0.30 over and over is how Buffett turned $10,000 into $70 billion over his career. It’s no different here except we are buying dollar bills for 10 cents. Sounds crazy but it is true. Like I say PONY has a $2 billion asset and look at the ridiculously low enterprise value.