I say buy a package Rather than play just one stock and characterize one stock as a decent speculation. Which it may well be. (I don't know). It just seems to me there are so many variables affecting these E&P stocks. (I am a reader of Big Dog's Boom Boom Room thread now, where they are discussed.)
It's well known that there is, or might be, or could be, or will be, a gas shortage. I look at the stock prices and see that they are mostly up already, some up sharply, from lows. So some of that is driven by people like me who just might be coming late to the party. (I've taken very small positions in nine of these stocks in the past month or so.)
Unlike most stocks in the sector, PQUE hasn't moved much and is selling below book value without much debt. However, as you well know, these financial statistics aren't how these companies are evaluated.
When one sees a stock lagging others in the sector, then of course one is both attracted (the bargain aspect) and cautious (Is it damaged goods?). My summary between TMR and PQUE (I hold both stocks, I'm a total newbie as regards my knowledge of either company or even the sector players let alone the business aspects) is that TMR is finding gas, PQUE has been unsuccessful. But PQUE might not be in future. Who knows?
Paul Senior |
