Bought More Shares of Provident Energy
October 11th, 2006 by Grant in: Investing
When going through my options for the latest purchase in my Roth IRA, I ended up deciding to purchase more Provident Energy (PVX: chart, web, Y!).
While BIF does look attractive, it’s trading at a premium to the NAV and the return on capital is nearly 100%. While my CLM holdings are along those same lines, I don’t want to put too much into a stock that’s essentially giving me my money back.
I feel that Provident is a solid CANROY that is working hard to maintain reserves for the next decade and to provide a stable dividend to share holders. They also just announced a contined distribution of about $0.11 US on a monthly basis. There’s something to be said for consitency.
We are at the begining of natural gas season, and even though natural gas stockpiles are near record highs, I still feel natural gas has some price appreciation potential ($natgas: chart)through March of next year when temperatures start to rise before summer.
Additional Resources
Trust Intelligence Forum(CANROY Info)
Dividend Detective (More CANROY Info)
Disclosure: I own shares of PVX and CLM
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October 12th, 2006 at 11:11 am
Thanks for the beta. I do my own research, and see if I agree.
October 12th, 2006 at 8:02 pm
No problem, bill.
Please let me know your thoughts on Provident.
-Grant