PDC [Archive]

**vi-2-grow** Thu Nov 23, 2006 1:15 pm

PDC
PDC - PIONEER DRILLING CO.

Any comments on this one ... PDC

**blast_investor** Fri Nov 24, 2006 11:40 pm

hi vi-2-grow:

PDC Pioneer Drilling is oil and natural gas drilling service company. PDC price now is $13.6

I am cautiously optimistic on this stock, but not totally enthusiastic on it.

The stock had risen a lot from 2004 because of rising price of service business. However, the oil and gas price now are in temporarily depressed pricing environment, particularly natural gas price has been weak. This would affect a lot of drilling CAPEX spending therefore put pressure on PDC business. Several gas and oil companies already announced cut back or delay on its future drilling programs.

CHESAPEAKE ENERGY CORP (CHK) was big shareholder of PDC and they sold all of their shares while back. CHk is biggest driller in North America and they know this market very well. They sold PDC at $20 because then PDC was above private market price and above replacement cost value at $20.

Right now, the stock has dropped a lot and is attractive. However, because of weak gas/oil price recently, drilling activities will be affected first. I think the price is cheap at this price, but I would be cautious on it because the valuation is not at huge discount, and the prospect is cloudy at this moment.

There was no insider buying on PDC recently. This also indicates that insiders of PDC are not that bullish on PDC.