Donald / Nova
I looked at the company a year or so ago for a portfolio I manage. Looks like lots of potential that is underperforming in a big way.
In my very humble opinion, part of the problem is the corporate culture. They've tried very hard to introduce entrepreneurial spirit, but by and large the culture still seems to be that of Alberta Gas Trunk Line -- a regulated monopoly. I base that more on talking to current and former employees than anything else, but that's a strong message you get -- stifling bureaucracy.
If the company is broken up, you might be able to get more than the current price. I doubt that management really wants to break it up, but I'm also sure that, at some point, someone is going to put a gun to their heads and make them do SOMETHING for shareholder value.
Now hopefully this comment opens the door for some loyal Nova employee to come and defend the company with a more informed opinion than mine.
As for Petro-Can, I have some shares in the portfolio, and Hibernia seems positive for some upside. I'm holding the shares, but it's in part because I don't have a better alternative right now. As a native Calgarian, I simply cannot bring myself to give a rah, rah story on PetroCan -- it should never have been created, and there were enormous problems to be overcome when they were privatized. Even I have to admit, though, that Stanford has done a good job of delivering value to the shareholders in the last couple of years.
Kerm likes the company - maybe he can give you an ungrudging endorsment. |
