Re: Update of my E&P basket
Started my E&P basket in October 2010. I have added and sold positions to (1) build a low cost basis and (2) weed out the losers and build up the winners. The basket started out with 16 different small cap E&P companies.
I have trimmed my E&P basket from 16 stocks to 12. Sold off my losers, peeled off enough gains from my winners to cover losses so I can let the rest run. I added more to my basket last October when the lows in oil hit and many of these E&P's were selling much lower. MHR was one of these and a few others.
As a result, my cost basis is quite low on my remaining E&P's in the basket. I anticipate another sell off in October/November period and I will load up again.
I am learning that it is the nature of these E&P stocks to fluctuate a lot. They tend to peak in price in late April and sell down in Sept-Nov period. So this time, I peeled off some profits early, booking some losses & gains around the end of March 2012.
Some of these will double again so I want to always hold a long position. My strategy was/is to keep lowering my cost basis on my winners and be disciplined on taking profits on at least 20% of the position(s) as they move up 20% or more, peeling off a few shares here and there.
So far, my basket is 35% smaller from it's peak value of 2/24/2012 but around the same value from when I originally started building it in 10/2010. After netting out my losses, I have booked about a 20% positive return on my closed sales. Inside the basket, I show it is valued at 13% above my current cost.
Here are the positions:
IONAF 1.1 %
HK (formerly RAM) 9.31%
LEI 9.1 %
MPET 2.48%
AZZEF 3.05%
DEJ 2.1 %
SDCJF 7.26%
VOG 4.84%
SSN 17.67%
MHR 34.36%
DBLE 2.43%
AXAS 4.68%
My top winners include: HK (+86%), MHR (+ 68%), SSN (+19%), IONAF (+16%), & AZZEF (+7.14%). The others show losses that I will either sell when I take more gains and/or buy more should a buying opportunity arise.
Still an investment in progress.
EKS |
