I bought some Penn West Energy (PWT) for my wife for a quick profit and instead I have made a quick loss. It is a small loss. She won't divorce me over this but she won't pat my head either. Today, while floating about the Internet, I read this in a Business Desk report from the July 18, 2012 National Post:
Penn West shares have been hit substantially harder, having faced a litany of downgrades in recent months. The stock was down more than 4% shortly after 1:15 p.m. ET on the TSX to $12.76 per share, though it has fallen 37% since the start of 2012.
Mr. Pardy was also not the only analyst to lower his expectations for Penn West on Wednesday. Barclays Capital cut its rating on the company to Underweight from Equalweight in a research note published Wednesday morning.
Macquarie Capital and TD Securities also downgraded Penn West in May and June respectively as its share price has continued to steadily decline.
The company has pledged to reduce its mounting debt load by $1-billion over the next year through asset sales. While Mr. Pardy said he believes Penn West will be able to sell some assets successfully, “we have chosen to move to the sidelines for the time being pending further clarity regarding the timing and definition of the process, including the impact on its production levels.”
I'm looking for a window to ease my wife out and maybe lighten my own load when it comes to PWT.
Not all analysts are in agreement when it comes to PWT. StockReports + is still generally positive and recently upgraded the average score it posts for PWT. It only moved up a notch but PWT did move up.
I'm keeping my fingers crossed.