# Penn West Pet. & their "accounting irregularities that sttretch back 4.5 yrs"



## dubmac (Jan 9, 2011)

*Penn West Pet. & their "accounting irregularities that sttretch back 4.5 yrs"*

This one is down today about 13-14% - now has a 6.5% + yield. 
I've seen something like this before with the likes of SNC Lavalin.
Not sure if anyone is buying - I'm cautious. Accountants will be re-issusing financial statements etc.
http://business.financialpost.com/2...that-stretch-back-four-years/?__lsa=25b4-46c6


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## blin10 (Jun 27, 2011)

was looking at it too... hmm

this can turn out to be nothing and it will go up, or might be some bad news and it'll go down more, but thinking of picking up few shares


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## pwm (Jan 19, 2012)

I'm under water on this one, but I'm going to bet that it's oversold and I'll be putting in a low bid tomorrow to see if I can get some more at < $8.40.


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## pwm (Jan 19, 2012)

The commentator on BNN tonight said that regardless of the audit results, the thing to remember is that they still have all that oil in the ground.


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## Kaitlyn (May 13, 2011)

pwm said:


> The commentator on BNN tonight said that regardless of the audit results, the thing to remember is that they still have all that oil in the ground.


I'm also in the red... and have "enough" invested already, but so tempted to try and pick up some more. I definitely have some uncertainty about it going even lower in the short term, though...


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## dubmac (Jan 9, 2011)

Kaitlyn said:


> I'm also in the red... and have "enough" invested already, but so tempted to try and pick up some more. I definitely have some uncertainty about it going even lower in the short term, though...


one thing I'm concerned about are earnings - Google finance shows an EPS of -1.71 (that's a minus 1.71). seems a little unsettling unless anyone knows why, or whether the number is correct. [/url]


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## PuckiTwo (Oct 26, 2011)

I sold mine, had only 100 shares but bought in the $21ish - quite a heavy loss for me. Didn't feel that I had the time to wait until they sort out their mess which is not only the accounting irregularities and I can use the capital loss to offset CG. Still, I hate to lose money. 

Quite diverse opinions going on on the stockhouse forum: http://www.stockhouse.com/companies/bullboard/t.pwt/penn-west-petroleum-ltd
and this article from BNN  http://www.bnn.ca/News/2014/7/31/Bitter-rivals-face-off-over-future-of-Penn-West-Petroleum-.aspx


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## dubmac (Jan 9, 2011)

I read the following article today - read the last paragraph twice - then dove in for 200 shrs. - I'm OK with a dividend cut, and a further drop of 10-20%. It's the long term potential, and...all.....that....oil in the ground that may make a good outcome.
https://www.fool.ca/2014/07/31/what...um-ltd-s-accounting-probe-mean-for-investors/


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## PuckiTwo (Oct 26, 2011)

dubmac, the emphasis in that article is on "....investors who are willing to make a long-term bet on the success of Penn West’s restructuring plan". If I had 10 or more years, but I am retired and need to be quite cautious where to invest. PWT was my first stock I bought myself and it was a real mistake to buy it that high - you learn by your mistakes. This company had management problems for a long time and those seem to be continuing - with different people at the helm. the Motley Fool article is ignoring the underlying problems.


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## pwm (Jan 19, 2012)

I bought 300 more at $8.32 this AM with some "mad money" in my account. I'm a buy and hold sort of guy so I don't mind lowering my ACB and watching it for a while longer.


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## dubmac (Jan 9, 2011)

PuckiTwo said:


> This company had management problems for a long time and those seem to be continuing - with different people at the helm. the Motley Fool article is ignoring the underlying problems.


Puck - I'm under no illusion that this company will necessarily turn around quickly. I am hoping that the CEO is sent packing, and a share-holder revolt (see article) will send him down the "gang-plank" along with some of the other boardroom cronies. http://www.theglobeandmail.com/repo...uture-of-penn-west-petroleum/article19868726/ No question that the company has it's challenges - but as I said - let the dividend get cut, let the SP drop a bit more, and after the share-holder revolt, perhaps the situation will improve. Encana is a good example of what can happen when a new CEO gets in the saddle, cuts the dividend, and moves things fwd. 

FWIW - the more the stock price drops the closer (I am speculating here) it will approach the bottom. I also like the reference in the article that Mawer Financial divested itself of PWT because of the condition of it's books - I wish I could find out the identity of other companies that "fail" their test(s).


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## Fraser19 (Aug 23, 2013)

dubmac said:


> Puck - I'm under no illusion that this company will necessarily turn around quickly. I am hoping that the CEO is sent packing, and a share-holder revolt (see article) will send him down the "gang-plank" along with some of the other boardroom cronies. http://www.theglobeandmail.com/repo...uture-of-penn-west-petroleum/article19868726/ No question that the company has it's challenges - but as I said - let the dividend get cut, let the SP drop a bit more, and after the share-holder revolt, perhaps the situation will improve. Encana is a good example of what can happen when a new CEO gets in the saddle, cuts the dividend, and moves things fwd.
> 
> FWIW - the more the stock price drops the closer (I am speculating here) it will approach the bottom. I also like the reference in the article that Mawer Financial divested itself of PWT because of the condition of it's books - I wish I could find out the identity of other companies that "fail" their test(s).



Well now it is three months later, over 1B of assets have been sold and the share price is $5.04.

Where do we see this going from here forward?


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## dubmac (Jan 9, 2011)

The headlines for many cdn O&G companies looks very different than it did 3 months ago.....Goldman Sachs is suggesting that oil prices will average around 75 per brl in 2015! Not good. Saudi's seem ready to flood the mkt with cheap oil - will many NA companies be able to compete? ...your guess is as good as mine.
I sold my PWT not long after I purchased and got out with a small loss and bruised ego..


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## My Own Advisor (Sep 24, 2012)

Going down...me thinks.


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## Fraser19 (Aug 23, 2013)

dubmac said:


> The headlines for many cdn O&G companies looks very different than it did 3 months ago.....Goldman Sachs is suggesting that oil prices will average around 75 per brl in 2015! Not good. Saudi's seem ready to flood the mkt with cheap oil - will many NA companies be able to compete? ...your guess is as good as mine.
> I sold my PWT not long after I purchased and got out with a small loss and bruised ego..


Yeah its hard to say, but the 400M in accounting issues three moths ago and now the drop in oil sure has put it in a bad situation.



My Own Advisor said:


> Going down...me thinks.


How so, take over target? I have read in a few places that PWT is a possible takeover target. But there also appears to be a chance for some sort of recovery over the long term. Not exactly too sure what that would look like, or on a short term trade getting it low within the next few months and then selling out once some sort of rise had occurred.


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