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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (41294)	2/1/2011 11:02:39 AM
From: E_K_S	1 Recommendation Read Replies (2) \| Respond to of 78748

Hi Paul - Abbott Laboratories Common Stock(NYSE: ABT ) - Buy Covidien plc. Ordinary Shares ((NYSE: COV ) - Sell Followed you into Abbott Laboratories Common Stock (NYSE: ABT ) with a starter position. Company shows a forward PE of 9 and currently yields 3.9%. Stock still trades like it wants to move lower, so my initial buy is small. I peeled off a few shares of Covidien plc. Ordinary Shares (NYSE: COV ) that I bought 11/1/2010. I still like COV but the dividend is much lower and w/ good earnings today it seemed like a good time to swap out of a few shares of COV and buy some ABT. -------------------------------------------------------------------- Closed out stub positions in both PACE OIL AND GAS LTD(OTC: MDOEF.PK ) and Banco Bradesco Sa American Depo(NYSE: BBD ). Peeled off some shares of Enerplus Resources Fund (ERF) to finance the purchase of more shares of Penn Virginia GP Holdings LP (PVG) as I continue to build my position before the PVR/PVG merger is finalized. The recent McDep report ( mcdep.com ) still shows ERF as 13% undervalued. Some of the Small Cap Oil Stocks are getting close to fair value according to McDep. LINE is one that popped out to me on their list. As oil moves above $90/barrel, I am tempted to peel off a few shares of my large integrated oil(s) and redeploy the funds at a lower price in the future. For now I will continue to hold.... EKS

To: Paul Senior who wrote (41294)	3/1/2011 9:12:24 PM
From: E_K_S	Read Replies (3) \| Respond to of 78748

Re: Sundance Energy Australia Limited (SDCJF.PK) Started a position in SDCJF to add to my basket of E&P companies. They have some projects in the Niobara Shale area where both SSN & CHK have found Oil recently.. From their Web site: sundanceenergy.com.au This JV deal was announced 12/24/2010. Sundance Energy Australia Limited Struck Agreement with Halliburton and Macquarie Group Ltd. to Develop Niobara Project in the United States-12/24/2010 Sundance Energy Australia Limited has struck an agreement with Halliburton and Macquarie Group Ltd. to hasten drilling work at its Niobara project in the United States. Halliburton and Macquarie will participate in up to 40% of the Sundance acreage at its Silo and Bull Canyon prospects in states of Wyoming and Colorado. Sundance will receive a non-refundable participation payment of $2.4 million (AUD 2.39 million) in cash, under the deal. Halliburton and Macquarie will also pay up to $3.9 million (AUD 3.89 million) in development costs for a total consideration of about $2,500 per acre. The agreement requires the participants to begin drilling a horizontal well within 90 days at Niobara share prospect in Colorado. Halliburton and Macquarie will be able to earn up to a combined 40% of Sundance's working interest in both prospects by drilling a number of wells. ------------------------------------------------------------------------- The company has no debt but at the expense of a lot of shares outstanding (238 million). They do own a lot of acreage in the U.S. that they have projects ongoing. The company is cash flow positive too. From their Web site::"...The Company currently owns in excess of 110,000 net acres in some of the most prospective shale basins in the US, including the Bakken fields of North Dakota and the DJ Basin in Colorado and Wyoming. Sundance operates more than a half of its prospects; in the balance of its plays, the Company is partnered with industry leading operators including Helis Oil & Gas, Newfield Exploration, Continental Resources, American Oil & Gas, EOG Resources and Hess Corporation....". =================================================================== Not too sure how to prune my basket of E&P companies other than let them run while oil continues to move higher. T. Boone Pickens has a $120/barrel price target for 2011. Many of the E&P company reserve reports are to be released in the next 90 days. Positive company specific reports could move the E&P laggards much higher. I have 13 companies in my basket now, 8 are profitable and 5 show no gain or very modest losses. Of my gainers 2 are multi-baggers and 1 is a 50% gainer. The overall basket is up 31% about the same for crude oil during the same time period. I have had a total of 25 Buys and 0 sells. 17 of my buys were in 2010 starting in September 2010. My basket represents 6.25% of the portfolio. One of the stocks Samson Oil & Gas Limited (SSN) is my biggest gainer so far. I have made four purchases (10/27/2010, 12/20/2010, 12/22/2010 & 1/20/2011). This one alone represents a 2.25% position in the portfolio. I will probably do some major trimming/selling in the May/June time period. Hopefully, the value in these companies will eventually be recognized. It helps that at the same time crude oil is approaching its highs too. EKS