Portfolio Update: April 2012

Here’s the monthly update for the BTI portfolio for April of 2012. The HELOC portfolio is basically a non-registered account with money borrowed from my home equity line of credit. I will use the bank’s ‘Performance’ tool for the monthly results when possible because it takes into account deposits and withdrawals. On to the results:

portfolio snapshot april 2012

portfolio performance

YTD Results from January 1 2012

TSX YTD performance:??+2.82%

BTI YTD performance:??+11.00%

Monthly Review

I am still enjoying a comfortable lead on the market so far even if it’s not the 20% I was hoping for. Both Hyperion and Marquee have been largely responsible for the drop in ROI as they both took decent hits. However, I follow both companies closely and to my knowledge there is no change in fundamentals that would justify this price drop, so for me; it’s business as usual. Had I sold both stocks in Q1, I would have kept my 20% ROI and bought back in at much lower prices but then again, how do you know?

Putting wishful thinking behind, this past month has been slow in terms of trades as TriOil Resources was the only stock I added to my portfolio, I feel pretty comfortable with this financially strong light oil weighted player. In other accounts, Winstar Resources is another stock I picked up at $2.40 which has been surprisingly strong as of late. I am hoping for a market melt up this month where I can unload a few of my stocks as I expect more bargains to appear in July and August. Talk about market timing which isn’t bad to bank on in an environment of global uncertainty, is 2012 the year of the Spanish flu?

Eagle Energy Trust, a portfolio darling of mine, announced yesterday they are adding a second oil focused field in the US to their portfolio. This is a replay of the Salt Flat field movie where the company moved in, took over operations and ramped up production to a point where cash flow covered the distribution, declines and low production growth. The new field is currently producing 600 boed with plans to increase production to 1,000 boed by the end of the year. The price paid ($113.4 million) for an oil field of 2,937 net acres appears huge at first sight but makes more sense when one looks at the development inventory of 90 locations. Eagle will end up with 126 low risk development locations, an RLI of 15 years and a low debt to cash flow ratio of 0.5 that I expect to drop lower in 2013. The price of oil remains the biggest risk to EGL, besides that, I am enjoying the distribution and looking forward to a higher share price in the coming months.

Open Range Energy is my only NG focused company in this portfolio and I will be riding whatever comes its way this summer. I am surprised it had regained a little bit of strength lately. This could be the result of a change in sentiment regarding NG prices, a sentiment I have not felt yet as I am still cautious. I need to see a fundamental change in demand for natural gas before I warm up to NG weighted stocks.

The plan is to continue covering the dividend payers and oil weighted companies. I hope that youre enjoying these posts ??and ask you to email me if you have a special request.

How’s your portfolio doing? Have you bought or sold any stocks lately?