Good news out of PBG/PBN today. I think the fact that PBG is entering into the DRIP for half of their PBN shares could be a sign that they are preparing for a spin-off within 2 years. If they do not need the dividends, then they don't need to hold the shares within the parent company.
A long/short pair trade looks even more interesting now that the HBU is being given negative value.
Short 103 shares PBN $1095 Long 100 share PBG ($901) 2 years dividend paid ($192)
Let's say PBN shares are spun out in 2 years. You get:
$194 - From close in price gap $96 - new PBN shares cost basis $500 - 100 shares in HBU, Archon (estimate)
PBG.to/PBEGF, PBN.to/PBKEF...Re: short interest...Check out these 6 month charts on Petrobank & Petrobakken!! And to think short interest has gone up to OVER 11M shares for Petrobakken!! (11.29M shares sort as of 1/16/12). Short interest is @ apprx 5.5 sharesM for Petrobank. If oil remains strong, I would think at some point the Petobakken shorts will start covering which could drive the price on both stocks even higher. Time will tell. There has definitely been some strong action in both stocks since the bottom 3 months ago. Q1 (and especially Q2 due to spring break-up) will more than likely be a bit weaker on the production side, but Petrobakken has proved over the past 2 Q's that they can really ramp-up production when the weather clears. In the meantime we wait for THAI. Anyway, these 6 month charts are beautiful (unless you're short)...
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