Metacomet: PDP or CLL?
From Jan 9, when we were looking at your question:
>>My question is given the difference in price now between CLL and PDP, don't you think you will have a better leveraged investment buying CLL with the same amount of cash?
>>Gonna take significantly more market cap from here to double your cash in PDP......
I answered with the ending:
I do own slightly more CLL than PDP interms of cash on the table. Both have been good investments, and both will be great this year, me thinks. I'm not selling either, although I recently have been spending more on PDP than CLL. I think for me, its time to stop buying more and wait until all the good news comes through on both by the end of March. Of course, CLL at 3.25 or PDP warrants at 5.00 have great value and would cause me to think about buying more.
I was able to get some extra PDP when it dipped, but CLL temporarily hit the LKE/CLL floor of 3.50 I had called, and never looked back - I didn't buy more CLL. Oh well.
PDP has moved from from $7 or so to $12.50, CLL from $3.50 to 5.50. So PDP edged past CLL. Actually, PDP.WT went from $4.80 where I bought last time to $9.80, a very fast double, so again PDP was a better bet.
But now...
PDP or CLL? If all goes as planned, I think they both double by first quarter 2007, and then double again within eighteen months after that. On PDP I'd only add more after a pullback of some kind, but on CLL, I think its a safer place to add for now (fingers crossed).
But whatever the growth potential, if its the same more or less for both companies, PDP has more risk - with the political issues in the area. They both have very positive outlooks to the end of March (another 25-33% each?) PDP will report reserves get more drilling underway, and announce pipeline infrastructure construction details, - CLL will close some deals, get their EUB permit, and delineate Pods 1 and 2. All by April. So which is the better bet? PDP.wt doesn't offer the same type of leverage as before, but there's still leverage there.
On a risk/reward basis, I think CLL will edge out PDP.wt through to March end.
Now the question is, should they both be overwieghted EVEN MORE?
H |
