Jack Yetiv

Penn West Energy Trust: An Underappreciated Gem

To User,

Not a clue why Berkowitch would sell this stock NOW; prior to this latest earnings report, he might have sold because there were doubts about (1) how much PWE would benefit from higher O & G prices given their hedges, (2) how much interest would cost PWE given the high debt, (3) whether PWE would be able to digest the two large acquisitions (Vault and Canetic) accretively, and (4) most importantly, whether O & G prices will slide back substantially (not just a small correction like we had 2 weeks ago).

If you want to see some of these concerns in print, look for David Bui's SA article from about 3 weeks ago.

I disagreed with David and I bought into the company before it announced earnings but decided to write the article once the above concerns were put to rest.

I believe ALL of these concerns HAVE been put to rest, and I still cannot believe that not a single analyst has issued a single upgrade on the stock.

Jack