Petrobakken PBN - good dividend stock? looking for feedback.
Petrobakken Energy currently around 12.00 with a yield of almost 8% - question is, is this yield too good to be true?
Looking for feedback and opinions on this stock, good or bad.
If you do a search, I think there is already a thread on this co.
thx Y&A, last post on that thread was over a month ago, and that thread is PBN vs CPG,I was looking for current info and opinions on PBN.
Personally the dividend looks strong, however you are paying 40x earnings for this stock, so I am a bit puzzled and Id like to hear others feedback...
Hey Gumball, Here is a site called Stockchase. I really like it a lot. It basically is roundup of all the "expert" opinions from BNN. You can search for stocks and etfs and get opinions about them.
Stick PBN in there and see what the experts think. It's a great resource, I've learned a ton from there and it;s completely free. If you sign up (free also) you can enter your portfolio and they email you when ever one of your stocks is mentioned. They can also email you the top picks daily from BNN's Market Call and Market Call Tonight. It's much more efficient than having to watch the entire show. Granted many scoff at the experts but my thinking is if there is a consensus amongst them on a particular stock there is usually a pretty good reason for it.
Also, I recently joined this site
It costs just under 100 dollars a year. I really like it. You get unbiased info on many under the radar type stocks. But the best part is you can ask questions. I've asked a few and you will get an answer within an hour or so usually. It's run by a guy called Peter Hodson. I'm not trying to sell anyone here, but I personally find the information extremely valuable well worth the hundred bucks.
Last edited by kyboch; 2012-10-30 at 02:35 PM.
I personally don't like them because their net earnings do not cover the dividend. You can quite reasonably say that their drilling program and land values may make up for this over time, however, it is extremely rare for me to invest in a company that doesn't at least cover its dividend with earnings. They are at high risk of crashing oil prices, but could also double or maybe more if oil hit $150. I do take chances on companies with 100% payouts (especially, for example, if the P/E is 10 and its a 10% yield) but very rarely anything > 100%.
thx kyboch for the link, and thanks guys for the feedback.
If you read through the PBN vs CPG thread you'll see that I have strong opinions on this stock. I tripled my money on this stock, and a research report I wrote on the stock was circulated and resulted in a member of PBN's board of directors getting in contact with me. So I have a bit of a sentimental connection to the stock.
I still have a small position in the company. I'm not too concerned about their $21m Q2 net loss, Q2 is typically a bad quarter for these companies due to the spring melt. 3rd quarter production is typically much stronger. That loss includes a $61m non-cash impairment on their NE BC natural gas assets. Without that impairment net income would have been ~$40m against q2 cash dividends of $16m.
Check out the call options on this stock. They are very expensive, I'm currently selling call options against my position. 8% sustainable dividend and expensive calls are a perfect combination for a covered call strategy.
Looks like there is a plan of arrangement between Petrobank and PetroBakken coming up. Shareholders of Petrobank will receive 1 new Petrobank and 1.07 - 1.11 new PetroBakken. It appears to be quite a good deal for Petrobank shareholders.