Even with its recent run-up, Pengrowth Energy (PGH) continues to be my highest conviction position, and with good reason. By NAV, the stock is clearly undervalued. In addition, during Q2, the company announced a trifecta of good news, with the most important being securing $1B via non-core asset sales, which is enough to ensure financing for the first phase of the critical Lindbergh project. Lastly, but not least, Pengrowth offers a compelling yield of $0.04 per share, paid monthly. At current prices, Pengrowth yields slightly under 7.50%.
All the above are reasons to be bullish Pengrowth long-term. However, the company also has a key upcoming short-term catalyst: Q3 2013 earnings. It is my opinion that...
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