Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Can Penn Virginia Really Be This Cheap?

It may be a cliché, but there's something to the idea that investors ought to be cautious when a stock price seems too good to be true. I'm quite well aware of the vulnerabilities and problems of modeling net asset values for E&P companies like Penn Virginia (PVA) (it's a pretty typical case of "garbage in, garbage out"), and I'm likewise aware that the Street doesn't like stories where the company has been missing production expectations.

Penn Virginia shares are up about 13% from the last time I wrote on the company, beating the EPX Index but lagging other notable Eagle Ford operators like EOG (NYSE:EOG), Halcon (NYSE:HK), and SM Energy (NYSE:SM). That...

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