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Strategies & Market Trends : Wolfgangrene's charts -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (3584)	4/20/2017 4:54:48 PM
From: Chris_Toronto	Read Replies (1) \| Respond to of 3976

Thanks for your feedback. These are the reasons I'm in it: - I don't have new things I want to buy in this market, except perhaps more SPY. - pey.to is a real company with valuable long term assets and strong balance sheet. - It pays a 5% annual dividend, payable monthly. Reason for its decline: - an exodus from Canadian energy names - It's going through a temporary phase of declining output based on where they are digging right now The company has some of the lowest cost and richest deposits of nat gas in Canada. Nat gas has been in its seasonal slow period, which is about to change soon. I'm familiar with these cycles of sectors being out of favour by the street and then their day comes and they become in favour again (but not until the big money quietly loads up first). The sector is now off the radar (a positive in my book) but select analysts I follow off the screen are pointing out that it is undervalued after such a long out of favour period. They can't import nat gas so demand will always be there and rising every year. Very few if any other supply exist at a lower cost than that of Peyto. So I think it's only a matter of time before this sector and this stock are back in favour. Meanwhile, it's paying a nice dividend and I have no other use for the money now. BTW, my style is to go after exactly such plays and my goal is a modest but safe return. I never double my money on any trade. I rather go after 10-30% bounces in dividend paying stocks. So, I'm not going to buy more soon based partly on your feedback but I'm planning to do so "IF" it dips below 24. If you look at the weekly chart you'll see an extreme oversold position that's ought to correct, unless a company is going out of business, which I have no reason to suspect here. Over the last 5 years the stock didn't spend more than 6 months without touching its 20-week MA and right now it is about 6 months so it's due. The 20-wk MA is at 28.88. The stock is at 25.53. Extreme weekly pincher is ripe. There are at least 2-3 dollars to be made on the anticipated initial bounce. There I would sell most of my position. I'm not looking at a big payout here. At least that's my thinking ;~ If you are into trades of small percentage potential the OTC pink ticker is PEYUF