Our updates keep you on top of your stocks: Pengrowth Energy, RioCan REIT and Bank of Nova Scotia

Article Excerpt

PENGROWTH ENERGY, $0.055, is a sell for our subscribers. The troubled energy producer (Toronto symbol PGF; Shares outstanding: 547.4 million; Market cap: $28.0 million; TSINetwork Rating: Speculative; No dividends paid; www.pengrowth.com) has two main properties: its Lindbergh oil sands project in Alberta, and its Groundbirch natural gas property in northeastern B.C. Pengrowth has now accepted a takeover offer. Privately held Cona Resources Ltd. has agreed to acquire Pengrowth for $0.0525 a share, which is 75% less than its $0.20 price the day before the deal. The stock is trading slightly above that offer price as investors may receive additional funds depending on the outcome of a lawsuit involving Pengrowth. The low takeover price reflects the company’s inability to restructure its massive debt, which totalled $705.2 million on Septemer 30, 2019. Weak oil prices and the lack of new pipelines in Western Canada also added uncertainty to its plans to expand the Lindbergh oil sands project in Alberta. If two-thirds of Pengrowth’s shareholders approve, Cona Resources aims to complete…

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