Stock Trades: Back into Delphi Energy (TSE:DEE)

Yesterday I bought 1000 shares of Delphi Energy at $2.41 in my HELOC account.

Stock Trade Commentary

The buying and selling should start leveling off following several days of profit taking. Most of the stocks I sold have been replaced with new ones that I perceive to be potentially profitable in the near future.

Of course, it should not come as a surprise that I am back into Delphi Energy. I feel comfortable with half a position at $2.41 and would buy the other half if the share price falls under $2.30. September is almost over; the cold will soon show up and warm natural gas prices (pun intended) as we close in on winter.

Obviously I am not expecting high gas prices; just a $1 increase per mcf will be enough to reflect a decent return on Delphis share price. The weather will be playing a major role in this one. Add to that the company is due to report results from its drilling liquid rich gas and Cardium oil wells.

The GPX Acquisition

Having had more time to review the acquisition of Great Plains Exploration by Avenir, I find the offer too low. The NAV of GPX according to the companys August presentation was deemed at $0.81/share, Avenir will be paying 0.48c at most. On a $/flowing barrel it comes out to $38,000/barrel which is very cheap.

There is a small chance that another company might step in at this point. Even if it adds $0.10 to the offer it will still be making a very good deal. Daylight Energy comes to mind as they tried in the past to buy GPXs partners, a private company operating in the Crossfire area. As such I have decided to play the wait and see game with my GPX shares for now. Will Daylight show up with a new offer?

What would you suggest? Wait and see or sell and move on?