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

To: Paul Senior who wrote (42599)	5/11/2011 1:16:56 PM
From: E_K_S	Respond to of 78751

Re: E&P Basket Here is how some of the INDEXes have performed YTD: Thomson Reuters/Jefferies CRB Wildcatters Energy E&P Equity Index Symbol Name Close Change Market Cap* Avg Volume YTD 200 EMA WCAT Jefferies TR/J CRB Wildcatters $52.51 -3.62% $25.30 8,585 2.04% $48.65 * Market Cap is shown in millions of dollars. etfdb.com (Note: My 9% is looking pretty good compared to the equivalent ETF's) FWIW with the wild swing in commodity prices, my E&P basket is now at it's lowest level since I started constructing it in Oct 2010. My gain is now only 9% and at one time it was up over 33%. Therefore, it might be time to start buying more shares of the companies that still have a good story to tell. The quick gains from the large price spikes higher where I peeled off shares, now looks like the right move (LEI & SSN). I also have a portion of my shares where I wrote May 2011 options (GMXR & MHR) which also locked in some good gains. Therefore, in managing my basket, selling a few call options 4-6 months ahead and peeling off shares from time to time on large one day price moves seems to have help me manage the large volatility swings. A straight Buy & Hold strategy would have been a bit more painful. EKS

To: Paul Senior who wrote (42599)	9/20/2012 1:02:29 PM
From: E_K_S	1 Recommendation Respond to of 78751

Black Hills Corporation (BKH) - Closed out position selling the last of my BKH shares @ $36.00/share I plan to move the proceeds into more MLP's. Most of my BKH position was bought during the market "crash" 5/2009 around $15.98/share. I was alerted by your" buys" as it was a pretty crazy time as there were many excellent "value" buys available at that time. BKH is now selling close to a four year high, perhaps with a bit more upside left. My premise for selling is BKH did just complete the sale of some of their acreage with a good price/share and stock rallied to new highs. Dividend now around 4% which is ok (anything below 4% generates a sell signal for me). Because the company has a lot of exposure to Coal (w/ a separate coal mine division) and coal fired generating plants, this is a net negative for me. If their exposure was w/ NG and owned NG/Oil wells, I would hold and/or add to the position. MDU is one of the utilities I like because they have extensive NG exposure in their non-utility assets (including storage, distribution, and E&P w/ lots of acreage to develop). However, I am a buyer below $20.00/share, not at current levels. Therefore, for many of the reasons Clownbuck stated, I am building positions in MLP's, those w/ strategically located Pipelines, processing and NG gathering facilities and/or JV w/ E&P or any of the major integrated oil companies that are developing their shale properties (ie XOM). As a footnote, it is interesting that XOM chose to purchase new acreage from DNR that lacks the infrastructure (roads & pipelines) since they were able to obtain the land at a bargain price. I suspect their long term plan is to develop the infrastructure w/ one or more partners. Many of these integrated oil companies have (or had) very profitable pipeline and NG processing facilities (ie COP before the PVX spin off). They are excellent cash flow generators. I also noticed this week that Noble signed a NG exploration deal w/ Falkland GAS off the Falkland Islands: Falkland Gas Find Heralds World’s Most Remote LNG Plant: Energy The goal is to eventually build a LNG facility to export NG to Japan & Europe. Nobel is also the drilling partner for CNX to develop their vast NG reserves. There is a lot of new money finding it's way into the development, distribution and delivery of NG (even LNG) worldwide. Both Japan and Germany have stated that new nuclear facilities are out of the picture and NG and NG liquids will be the replacement fuels. EKS