Stock Trades: Bought Avenex Energy

buy-or-sellToday, I bought 560 shares of Avenex Energy (TSE:AVF) at $5.70 in my TFSA account.

This brings my total to 1,000 shares of AVF at an average price of $6.00 in my TFSA account.

Stock Trade Commentary

I‘ve decided to round up the number of shares of AVF in my TFSA account. The 440 shares I had were the result of the GPX acquisition. Avenex has been under pressure since an American broker decided to dump 250,000 shares at market close last week pushing the price below $6. The price was not able to recover since then. Avenex is one of my favorite income vehicles with more than 9% yield at current prices. The company has a diversified asset base with equal weighted production and an oil and gas marketing division to supplement its cash flow. It trades below the radar and it is NOT a vehicle for growth as it is designed for sustainable income with a targeted POR < 60%.

I had a chit chat with one of the VPs today and confirmed some data with him. If investors are sheepishly selling AVF because some brokerage house exited they are making a mistake and if they are selling AVF because their Q1 report is due on a Friday after market close implying the company has negative results well they might be making a bigger mistake in my opinion unless the VP lied to me which I doubt.

AVF’s strongest quarters are Q1 and Q4 so I don’t expect any negative surprises at all. On the other hand, it is a weak market out there and maybe the share price is simply reflecting investors’ worsening mood. Today’s buy was very small and while I would have liked to pick it up at a lower price I am sure there will be further opportunities to grow my holding in the HELOC if the price drops substantially.

Are you a shareholder of Avenex Energy? What do you think?