Thursday, July 12, 2012
Added some PWT. Could not resist.
Penn West Petroleum Ltd. dropped into the $12.50 range today. I said just a day or two ago that the bottom was dropping out of my PWT investment. I couldn't have been more right.
Seeing PWT at today's price was simply too tempting. I bought the better part of a thousand shares. The purchase today did a great job at averaging down my per share cost. I'm happy.
I got into PWT through the back door. I originally bought Canetic Resources Trust and then Penn West and Canetic merged under the Penn West name. I wasn't happy when the merger took place and I haven't been all that happy since. The merged company has lost a lot of value over the years and at one point I was down very big bucks.
PWT has a fairly good name. It has a good chance of recovering a lot of value in the coming years. For those who are patient, I am, it may be a very nice stock to own if your entry point is in the $12.50 range.
The dividend at the moment is 8.6 percent and that worries me. When yields climb too high, I worry the dividend may get knocked down a notch. I don't lose sleep over this as even chopped in half I can live with the dividend.
Yes, I'm happy.