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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (39762)	10/21/2010 12:34:21 PM
From: Grantcw	Respond to of 78567

Thanks, E_K_S. I had read this article this morning, which is what has me thinking about this again. And yes, I'd love to let the stock fall back to support at 35. I'm hesitant to buy here at resistance at 39-40. Thanks, cwillyg

To: E_K_S who wrote (39762)	10/21/2010 3:46:27 PM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78567

The author claims undervaluation of PBEGF by saying that the market cap of two public holdings is almost equal to PBEGF market cap. It is indeed undervalued only if the public holdings are undervalued. The author gives a very short and very unconvincing argument that the holdings are indeed cheap. I'd have to look much deeper at Petrobakken and Petrominerales to be sure that's the case. Of course, it's possible to buy PBEGF and short Petrobakken/Petrominerales, to play on the fact that PBEGFs holdings assigned almost zero value by the market. If one does this, then the overall position is indeed quite undervalued. However, I'm not so sure it's the case if you don't short the public holdings.