Pine Cliff Energy Ltd T.PNE

RE:RE:RE:RE:RE:PNE: flatlining

[zack50]

parcheg wrote: Zack
In spite of the overall enthusiasm on this board, and in answer to your question:
("...convinced to hang on as  shreholder"), the answer is 
no
In spite of the more than reasonable yield, the stock is not flatlining but, rather, as the liear regression shows, a defiite decline and resulting erosion of book value.
Greener pastures elsewhere, I believe.
GLTA

Yes, PNE's share price has been on the decline lately... but no doubt, as Philip Hodge recently stated, the weather related downward pressure on natural gas and the Freeport LNG facility being offline have had a lot to do with that.

It's also important to note that PNE sells 90% of its gas in Western Canada and presently storage levels in Alberta are well below 5-year levels. The drop in storage levels has been attributed to record WC natural gas exports and intra-Alberta demand... actually, Alberta has become Canada's largest gas consumer.

Remember...

* no long-term debt ... * very low asset decline of 7% ... * abundance of cash

* high dividend yield ... * LNG is coming to Canada ... * Pekisko drilling success

* great hedges on gas contracts ... * break-even gas price is $2.45/mcf AECO

* Philip Hodge and other insiders have never sold a single share of their PNE stock... that speaks volumes! 

Anyway, hopefully you'll search out another company that will offer you a very good return on your investment. For me, my PNE yield of ~45% is just too lucrative to divest at this time. Also, I feel confident that the price of nat gas will rise again, as will PNE.

All the best