Yesterday, I bought 1000 shares of Arcan Resources at $4.51 in my HELOC account.
Stock Trade Commentary
First, I am so glad my offsite training is over; I can finally get back to my office and keep a close eye on the market. I am also glad the explosive cocktail of elections and QE2 turned out positive. Ben unleashed QE2 yesterday by turning the printers on. Following his decision the dollar is positioned on the receiving end of a decent beating at the hands of speculators. Of course, I cannot just sit there and watch without taking advantage of the situation. With the devaluation of the USD, commodities will be shooting higher.
I do not care if it was the right or the wrong decision. I also care less if all of this is makes sense or not. I will take advantage of the consequences. Oil went above $86 a barrel today and I intend to maximize my return from this. Even though I was in offsite training, I managed to keep some sort of follow-up on the sector and identified what I believe to be my next target: Arcan Resources, TSXV:ARN.
ARN has 140+ net sections of undeveloped lands in the Beaverhill lake formation in the??Swan Hills reef complex. They are 85%+ weighted to light sweet oil with plenty of drilling ahead. Second Wave Petroleum would be Arcans little sister in that regard since they are targeting the same formation. SCS has started to move today and I expect ARN to follow-up. Look at it this way, if at $70 junior oil producers make decent money, you can imagine their netbacks at $86.
How are you planning on taking advantage of QE2?