Hedging strategy looks myopic & PEY looks stuck tooThis is my first open criticism of PEY this "go-around". Insofar as their hedging and strategy to even out the cashflows, we have been *waiting* Q after Q for the underwater bets to come off. But with a market continuing in backwardation, it is most concerning that they simply continued to keep adding instruments.
This behaviour lacks vision; it shows a paucity of awareness of certain one-in-a-million *black swan* events that can upset markets and companies that are too slow; too entrenched or just too blind to act swiftly.
Who imagined Putin would have actually done what Russia has done?
Who could have thought that the greenies would get bitten on their own asses by the very movement they have started - which may well be worthwhile - but in of itself, misunderstands the incredibly complicated nature of the provision of energy, the time and the money it takes?
And then PEY has the gall to tell us net-net how much $$ thay have made by hedging since 20XX?
That alone rings alarm bells for me.
I don't want to know how much they have made!
The entire purpose of the strategy IS NOT TO MAKE MONEY. Its to smooth out and make cashflows more predictable.
IMO, they have widely missed the mark here and must be challenged to stop this waste of opportunity.
All I wanted was for an experieenced Board & Management to act as if the world HAS changed rather than keep on keeping on.
I have sold half my position (making a X3 bagger) but was sad to have to do this as I believed PEY was headed to $25 sooner than later...
JMO.