Posts from the ‘Equal Energy (EQU)’ Category

Apr 23

Week 146: Some thoughts on agility

Portfolio Performance

See the end of the post for the current make up of my portfolio and the last four weeks of trades.

Recent Developments

Four weeks ago I wrote:

I think an important pillar of my strategy to take advantage of the concentration that I can have. I don’t have anyone pressuring me to be diversified or questioning my risk level or anyone to answer to if something goes wrong. So I don’t hesitate to have a large percentage of my portfolio tied to the names I think will perform the best.

With that said, the names that I am currently of the heaviest weight are, of course, Pacific Ethanol, which remains my largest position by far

Today Pacific Ethanol represents a 2% position for me. Read more

Apr 1

1 Comment

Week 91: Consolidating

Portfolio Performance

Consolidation

Patience is a difficult virtue. I’ve had 3 weeks of pretty so-so performance, some stocks going up and some stocks going down and overall not much of anything happening. With the market going up seemingly every day its hard to not let that play on your mind.

But you have to have a balance of patience and impatience to do well in stocks. You need to have a healthy level of impatience so that you don’t hold onto positions for too long, but tempered with an equal dose of patience because, as I read some time ago from a cagey market veteran, you will make 80% of your gains for a year in 2-3 weeks, and figuring out which weeks those are is nearly impossible.

In the last few weeks I think I demonstrated a little bit both; witness impatience in my selling of gold stocks and of my position in Tricon Capital and patience as I held on to falling positions in MBIA, Impac Mortgage and watched YRC Worldwide and Yellow Media correct substantially from their highs. Read more

Nov 4

2 Comments

Week 70: A stock pickers Market

Portfolio Performance

(Note that I am now posting my portfolio composition and list of trades at the end of the post)

Update

I didn’t get around to writing an update last week because I was busy with other research that could not wait. So its been 3 weeks since I updated my portfolio and transactions and quite a bit has happened over that time.

Over time my portfolio has slowly morphed into a vehicle for playing the housing recovery. I had large moves to the upside in a number of my housing related positions, with the most pronounced being of course Impac Mortgage (IMH), but also from Radian Group (RDN), MGIC (MTG) and a number of my regional banks with strong mortgage banking operations. Its been a good 3 weeks.

In this post I want to talk about some of the changes I’ve made over the last 3 weeks. To summarize:

I sold out of all my gold stocks other then Atna Resources (ATN)
I made a brief foray into, and then out of, US E&P’s
I am out of JC Penney (JCP)… for now
I am into Avenex Energy (AVF) and a homebuilder (HOV)

I will address each of these in order, followed by a brief discussion of what to expect from Nam Tai, which reports earning on Monday and of which I want to be clear of my expectations and actions. But first I want to talk generally for a moment.

Twitter

I’m finding that I am using twitter quite a bit to post what I am doing on a more regular basis. Whenever I find a relevant article, or if I start to buy a new stock, I try to put a post up on twitter. I have also found a number of folks on there that have been useful to follow. Its a useful tool, and has the advantage over the traditional message board format in that you follow a person rather than a subject. So you aren’t wading through garbage to find nuggets. You can follow me @LSigurd. Read more

Nov 4

2 Comments

Very Pleased with Equal Energy sale of Lochend

On Friday Equal Energy announced the following:

Equal has sold its Lochend Cardium assets for cash consideration of $62 million, effective October 1^st 2012. The assets sold include current production of approximately 525 boe/d (93% light oil) based on the most recent 30 day average, related infrastructure and undeveloped land.

The sales price equates to $118,000 per flowing barrel. At the end of 2011 proven and probable reserves at Lochend were 1,621 mbbl of crude oil, 2.6 Bcf of natural gas, and 64.8 mbbl of NGL. Using those numbers, the disposition went for $29/boe of P&P. However successful drilling has been done at Lochend since that time so their will undoubtedly be higher reserves attributed to the area when the year end reserve report is completed, so take that number with a grain of salt.

The sale removes the last of the Canadian land assets. All that is remaining now are royalty interests that I would imagine will sold in short order. Together with the sale of the Mississippian interest, and the Viking land at Halkirk, Equal has reduced its debt down to a minimal amount.