Replies to post #1472 on Global Value Investing

[2morrowsGains]

PBG.to/PBEGF, PBN.to/PBKEF...Petrobank is trading at a huge discount to Petrobakken this morning. Petrobank's 59% ownership in Petrobakken = $1.3 BILLION !! (based on current share price). Petrobank's market cap is currently approx $996M. The current gap between stock prices is really making Petrobank look undervalued.

[throwerw]

PBG/PBN

Sometimes when you think long-term, things work out much quicker than expected.

Since 12/19, PBG is up 50% while PBN is up only 25%.

This was the original trade:

Short 103 shares PBN $1214
Long 100 share PBG ($899)
Cash left over $315

This is where is stands now if you close out the trade:

Cover 103 shares PBN ($1,504)
Sell 100 shares PBG $1432
Dividends paid ($16.50)

Cash left in your pocket $226.50

Not bad for a risk-free trade, but I think it gets better if you hold for a few more months. PBG now has net cash at the parent level, and is accumulating more PBN shares through the DRIP.