Penn West Energy dropped from Income Portfolio

Posted by Tim
November 28, 2008

Today I have “sold” the position in Penn West Energy (PWE: 12.91 0.00 0.00%) out of this site’s Income Portfolio. The combination of falling oil and natural gas prices, a stronger dollar and growing unfavorable Canadian tax laws have driven down the stock price. I believe the next shoe to fall is a cut in the distribution. U.S. shareholders have already taken a 17% payout reduction on the dollars strength.

I will be looking to replace the position with some possibilities of early dividend capture. I have sold 2 positions, PWE and City Bank (CTBK: 5.50 0.00 0.00%) without adding any replacement to the portfolio. High on my list of possible additions is the Claymore/Zacks Yield Hog ETF (CVY: 13.26 0.00 0.00%). I will also scan through the income stocks on my Watch List. Tune in next week for updates.

More on this topic (What's this?)
Could Natural Gas Go to $4/MMBtu? (naked capitalism, 11/24/08)
Energy Stocks Will Roar Back - But Not Soon (Jim Kingsdale's Energy Investmen..., 12/3/08)
Will Excess Liquefied Natural Gas Reach the United States? (naked capitalism, 12/22/08)
Read more on Energy, Penn West Energy Trust at Wikinvest
Energy, Income

If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.

Comments

No comments yet.

Leave a comment

(required)

(required)