Portfolio Update: February 2012

Here’s the monthly update for the BTI portfolio for February 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:


YTD Results from January 1 2012

TSX YTD performance:??+5.80%

BTI YTD performance:??+20.00%

Monthly Review

February is already behind us leaving 1 last month before the first quarter ends.?? I am already at the 20% ROI I was looking for and the question to ask now is: can I grab a few more points in March? March is ideal to lighten up this portfolio before spring breakup and before we settle into the summer. Remember, the plan for this year is to sell way before May and go away (while keeping a few core positions). Who knows what surprises Europe still holds, I also dont want to discount a sudden rise in tension around Iran. Am I simply falling into market timing? You bet.

The portfolio is carrying a lot of baggage from last year, REL, NAE and a hard hit ONR following the collapse in NG prices. REL has been a pretty disappointing performer this year, the lid on the stock price @0.32 could mean something and could mean nothing. ??I will innocently assume that the share price is reflecting the extended silence from the management. Management insisted theres nothing fundamentally wrong; drilling operations on track and they promised 2012 guidance + an operational update will follow shortly. I never lost a penny on REL in the past and I have bought in and out successfully several times in multiple accounts. Hopefully it won’t be different with this chunk of shares.

I was very surprised with how ONR’s share price reacted to the news and I have to admit I missed selling my shares as I have been overloaded at work these past 2 days. I mean sure the results are very positive for their first Montney well but let’s not get carried away here. Their natural gas weighting is still very high and it will take a few more wells of this caliber to impact cash flow substantially. ONR is designated as my tax loss for the year not because there is anything wrong with the company it’s just because it does not fit the mobile warfare style of this portfolio (which has been somewhat stuck in trench warfare).

The ROI so far is decent but I am feeling uneasy with the market. While I might be wrong with my feelings, I believe it’s better to miss profits than to register a loss.

How’s your portfolio doing so far?