Week 38: Waiting on a move
So first of all . . . .
I don’t know what happened with the AUM trade
I think there is a gliche with the RBC Practice Account because somehow I sold Golden Minerals (AUM) on Wednesday and ended up with a long AUM in Canadian dollars and a short AUM for the same amount of shares in US dollars on Thursday. I am hoping the trade resolves itself (in my actual accounts this sort of matched trade in the wrong currency would automatically resolve) but if it doesn’t I will attempt to clean it up myself. I wanted to point it out because my current portfolio composition looks a little odd as a result.
Buy more banks . . . .
I’m still buying financials and I am actively looking for more to buy. I got a few more ideas from a new website that I have signed up to called stocktwits (its like twitter for stocks). The names are: ORRF, FFNW, SNBC, and GBNK. I haven’t done enough research on any of these names to make an assessment of them.
This week I added to both Shore Bancshares and to Rurban Financial. I looked at both in more detail this weekend and I am happy with what I see. I’ll try to put together a post on each shortly. I’ve already seen a double in Community Bankers Trust, and I’m up 40% since my original purchase of Bank of Commerce Holdings but I have no plans to sell either.
This week I also noticed that one of the banks I held but sold, Xenith Bankshares, popped. I may buy that one on weakness. I’m also watching the newswire for anything on Atlantic Coast Financial. ACFC has a brutal loan book and could very well kick the can at some point, but the stock also has a book value of over $19 (yes that is right, it is a $2 stock with a $19 book value) so it is imaginable that if the banks continue to be on fire the stock could move up rather substantially.
. . . .Less oil
I sold out of Arcan Resources this week.
Why did I sell? Three reasons.
- The company ran into some operational problems (again) that cut back production for a time
- Spring break up is upon us and while I’m not certain of the extent that Arcan is impacted I do know that the junior oil investment community tends to go on leave from April until June.
- I want to put my money in the best opportunities and right now the best opportunity is in the regional and community banks and in the mortgage servicers.
Maybe I am selling at the bottom. I’m sure there are a few that would scoff at me selling after a 20% drop. Stupid retail. So be it. The banks are going up right now and Arcan is not. So I would rather own the banks.
To give you a taste of just how impressive the bank performance has been, consider these charts:
A couple new positions
I also have initiated a couple of new positions that I consider myself “restricted” in talking about, at least for the time being. The first is Cal-Maine Foods, which is a large egg producer. If you want to get an idea of my reasons behind the purchase, take a look at my recent tweets ( I also signed up for Twitter this week).
A second position that I started was Golden Standard Ventures. Golden Standard is drilling in Nevada and they may have hit gold in the way of a Carline style deposit. A real spec here, but one that from what I hear has a reasonable chance of working.