It is my understanding that PGH has half its revenue from Natural Gas - so it isn't really a pure oil play. Diversification probably helpful
And WOW...never realized it worked like that-
According to your PPS analysis - a stock has more upside potential if its share price is lower than another stock. So if PWE does a stock split and has its current 502 M shares double (to 1,004M)- and its PPS per share halved -to .69c - it would be a screaming upside opportunity compared to now?
Or if PGH beats them to the punch- splits its 547M shares to 1,094 and of curse the PPS of each goes to .86c - better bail on PWE and get to it...for the upside.
(If you didn't get it - that was sarcastic - PPS means nothing on its own or even as a comparison to another stock - without considering many other things - NUMBER OF SHARES a biggie; other financial structure (debts/bonds, etc), as well as other factors in the financials).
I appreciate PWE sold assets at a very good price and that is moving it off the brink of the abyss. Moving off of likely default to be in compliance is not really a sign of great value - but rather meeting a minimum standard. And I thought having assets were a good thing for a company? If not and selling them is good for value - shouldn't they just sell the rest of what they have and then make their future even better? . The idea - between debt and equity funding - to have good assets that produce more than they cost to own. Getting rid of the debt is a great thing...worthy of it getting some favorable upgrades - especially from those that had it strongly disfavorable as recently as mid-May.
PGH has to address it's problem soon...and I am not at all certain that they will be able to match PWE great sales transaction...hedged so they won't realize much from the increase in oil price - and trying to pay down the debt organically is a rough road...it would seem any problem - assorted OPEC actions, Natural Gas volatility...and no way to advance the holdings it has without new funds...all are problems that make one wonder if the survival is only to lead to a not very (or at all) profitable company at the end. A problem with both.
Not to mention - these Cos base of attraction was the very special tax and high dividend proposal they were allowed. It also caused many restrictions (and costs). They have lost that stock buyer/holder market - and are left with the detriments of the structure.
