Jack Yetiv

Penn West Energy Trust: An Underappreciated Gem

I was absolutely flabbergasted that at the conference call, only 3 questions were asked, all by private investors. Not a single one by an analyst.

I could understand this if this was some small company trading in the pink sheets, but this is a company with an enterprise value of $15 billion paying a 13% dividend. What kind of risky bond would one have to buy to just get 10% in this market?

What this tells me is that IF some respected analyst from a respected shop finally wakes up to this gem, it has a decent potential of moving well. And as we all know, the analysts are a bit like lemmings--once one of them picks it up, others will follow.

This is one of the worst "misprices" (IMHO) in the market today.

Jack