June 25th, 2011 
Category: 
Bought 1,000 shares of Pinecrest Energy (TSXV:PRY) at $2.52 in my TFSA account.
Stock Trade Commentary
I’ve been very busy lately which explains the summer doldrums in new posts. Add to that a portfolio with neutralized offensive power thanks to the latest market drop. The market unleashed a huge offensive and trapped most of my holdings in red wiping out yearly double digit returns in less than a month. This is the nature of the beast and at this point I will stay the course as I am aware of what each of my companies is doing and I see no reason to panic. Drilling in Alberta is gradually restarting with HYX and SKW both set to resume operations very soon. It’s business as usual in the oil patch while the stock market is reflecting the big economic picture with all the risks to the global economy.
I’ve bought some Pinecrest Energy in my RRSP in the low $2.30s earlier on before adding it to my TFSA at $2.52. This transaction should be a quick flip if the opportunity presents itself. PRY is the premiere Slave Point oil play and has been holding up well in this market. I expect a detailed update soon on the overall situation post the pipeline interruption and the fires in the area. Pinecrest is a long term winner regardless of short term price action.
There are a lot of specials out there it’s a shame there’s very little offensive power left so I have to be nimble for now. Will the markets drop lower or have we hit a bottom for now? I don’t know but things are slowly taking shape according to my expectations. The release of strategic oil reserves is overall positive as it hastens the retreat of oil prices to a comfortable price range over the summer. Avoiding default and double dipping will set up the market for the next leg up by the end of the year in my opinion.
These are the times to test your nerves and your tolerance for volatility as a DIY investor. I will have a lot of things to say in the next portfolio update.
How’s your moral and portfolio these days?
My DIY stock portfolio is overweight in Canadian oil producers for a reason. I believe Oil consumption is on the path of growth for the next decade and I intend to take every advantage possible of it:
Morale is OK. I expected summer to be somewhat bland with “sell in May” and all. I am actually anticipating a double dip recession and wouldn’t be surprised to see the DOW drift back to 4 digit territory. It seems like there is another crisis out there looming. Working on personal balance sheet and will be focusing on debt for awhile.
Interesting that you’re anticipating a double dip recession, I am on the other end and I believe lower oil prices will support the recovery. It’s those opposing views that make a market right ?:)
Bernanke is the first cause of everything in the market today. He is exercising his omnipotent power as head of the Federal chair to influence risk appetite. Well, there will be either more monetization soon or watch hundreds of thousands of government workers in Washington not get their pay cheques and be sent home crying. My Schadenfreude would be so high at that point, it would almost be worth a 50% cut in my portfolio to see it. But it ain’t never gonna happen! Believe me, by August or September, the pols in Washington are going to lose nerve and there will be new debt ceiling (and QE3), based upon a compromise between the left-wing republicans and the democrats in the House.
I wouldn’t be surprised with QE3 by August or September even if we all know Ben is out of ammo. On the other hand, all it takes is a full military withdrawal from Iraq and Afghanistan and the government saves about $170B per year! A good start if you ask me…
funny thing is the cost of war is $100B MORE than the combined GDP of both countries…what a waste of money…
Defence budget is less than 1/5 of the whole, and yet the US is borrowing 41 cents on every dollar spent. That means even if they cut out 19 cents–the entire defence budget, the US would still have to come up with another 22 cents of borrowed money. But frankly, if you look at the US constitution and its history, the federal government’s main mandate is defence. Cutting out the military would destroy the very reason for the US to have a federal government in the first place!
Why not cut Social Security? The spending for that alone is more than the defence budget.
Nice observation on defense spending but how much can you cut from entitlement programs? another form of the question would be, which party will take on the heat for even considering such cuts?
I agree with you, these entitlement programs should contribute to reducing the deficit as well!
Your question explains why we will have QE3 because neither party will want to take the heat.
In any case, whether you agree with the Iraq, Libya and Afghanistan wars, when the US becomes insolvent, they will have to bring the troops home. Then there will be power vacuum in the world.
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Morale and portfolio are holding up pretty well actually. I think it helps I have a good bond allocation in my RRSP and a couple of my U.S. dividend-paying stocks aren’t diving on share price either.
There are some specials out there, just wish I had money to make a purchase or two.
Oh well, maybe this fall? October is always a fun month!
Absolutely agree with you on the bonds allocation. I don’t even bother look at my main RRSP portfolio as it’s composed of 3 indexed funds, one of them a bonds index. However, this portfolio is different as it has its own mandate…got to keep track
My REITs held up really well, it’s the juniors that got whipped which is fine as they will come back like they always do come the end of the year…
Hi Mich,
I like your website and visit it frequently. Just a question concerning Pinecrest’s reserves. Do you have the latest value of PRY’s P+P reserves? In their July news release only increase in number and % of locations was announced. The most recent figure of P+P is 1.806 MBOE, according to their March 23 news release.
Thanks and cheers!
Sorry Cash, I would not know what the latest figures would be.