Petrobank up on heavy volume

[dan_s]

Petrobank was up on heavy volume because of this and the higher oil prices today. Mutual Funds are now taking a hard look at Petrobank and they like what they see, a company heavily weighted to oil. - Dan

TORONTO, Dec. 22 /CNW/ - Standard & Poor's Canadian Index Operations announces the following index changes:

•The shareholders of Petrobank Energy and Resources Ltd. (Toronto:PBG.TO) and Petrominerales Ltd. (Toronto:PMG.TO) have approved the Arrangement Agreement whereby Petrobank shareholders will receive Petrobank's proportionate interest in Petrominerales. Shareholders of Petrobank will receive 0.614 common shares of Petrominerales for each common share held. Petrominerales will also change its domicile to Canada. The distributed shares of Petrominerales will be added the S&P/TSX Composite and Capped Composite, the S&P/TSX Equity and Capped Equity, the S&P/TSX Completion and Equity Completion and the S&P/TSX Capped Energy Indices. These changes will all be effective after the close of trading on Friday, December 24, 2010

[wturk]

Dan,

Is the drop in Petrobank entirely due to the spin-off or are their other reasons. Thanks.
Bill

[dan_s]

Yes. Actually, it should drop by 0.62 X the share price of PMG.TO.

[prince_jake_33]

I talked to Schwab rep today and he said the transfer of PMGLF will be done automatically but he doesnt knew exactly when. Maybe someone has a guess as to when the shares will show up in my accounts.

[dan_s]

PetroBakken (PBN.TO) is what we should be buying today. There is no reason it should be down today. Just a reaction from those who do not understand what is going on.

PBG.TO should settle in the $24.00 range.

PMG.TO should settle in the $31.50 range.

Both companies will be in the 2011 Sweet 16 and my Fair Value will be a lot higher for both companies. They are both heavily weighted to oil and growing rapidly. These are exactly the kinds of companies that I search for.

[dan_s]

Petrobank wil be hosting our next EPG luncheon on January 20. You can sign up today on the website.