Stock Trades: Bought Delphi Energy (TSE:DEE)

Yesterday, I picked up 1500 shares of Delphi Energy (TSE:DEE) at 2.53.

Stock Trade Commentary

Yesterday, after I finished reviewing the Q2 filings, for a second time, I went over a recent analyst report about Delphi praising a strong and solid quarter. I always have Delphi on my radar, so I noticed the price drifting downwards on light volume. There was nothing fundamentally wrong with Delphi justifying the loss. So I decided to dip in and add it to my HELOC account.

This will be a price fluctuation experiment, if the price floats back above 2.60 today or tomorrow, I might lock in the profits. On the other hand, I also might change my mind and unload another stock keeping DEE for diversification purposes; you just can’t own them all! The natural gas component is not scary with Delphi because of their hedges and because their new natural gas drilling targets are liquid rich with an average content of 50bbl/mmcf which sells for much higher than a barrel of oil equivalent for natural gas.

In case you’ve missed it, Reuters reported on Monday that some fund managers made big bets on oil in the second quarter following BP’s Gulf disaster. Billionaire Carl Icahn committed nearly $1 billion to the sector during the second quarter. Buying those companies while oil was gushing with doubts surrounding offshore drilling sure was a bold and a profitable move. Was this simply bargain hunting for a quick profit or a combination of both bargain hunting and betting on oil for the near future? Time will tell’