Stock Trades: Bought Equal Energy and More Reliable Energy

Yesterday, I bought 1000 shares of Equal Energy (TSE:EQU) at $5.50 in my HELOC account.

I also bought 10,000 shares of Reliable Energy (TSXV:REL) at $0.315 in my HELOC account.

Stock Trade Commentary

Since I am still enjoying low commissions in my HELOC account for December because I racked up more than 30 transactions in the last 3 months, I decided to continue taking advantage of that.

I’ve held Equal Energy before and got back into it yesterday. Equal is a turnaround story, it’s as simple as that. They currently have crappy netbacks and legal issues with their JV partner in Oklahoma. However, they’re shifting capex to Alberta’s Cardium and Viking formations and the downside of a legal loss is minimal. In my opinion the company will be in a much better shape come Q1/2011 providing oil is still above $75 and the market is at least range bound. The share price might come under pressure for the rest of December because of tax loss selling which could present an opportunity for picking up more.

As for Reliable Energy, well it now constitutes a sizeable position. But this investment is not a 1 week flip; it needs to take its course over the next 3 months as the company completes about 6 HZ wells in the Bakken. REL has had its fair share of bad luck with the weather and lack of fraccing crews just like every other company operating in SE Saskatchewan. If investors lost patience and moved on, that makes me happy to buy in at cheaper prices. Sooner or later the fraccing will be completed and the wells placed on production. The “sex appeal” of the Bakken will assign a premium to this company sooner or later especially if current oil prices persist into 2011.

Related posts:

  1. Stock Trades: Bought Reliable Energy, Primary Petroleum and Bowood Energy
  2. Stock Trades: Bought Equal Energy (TSE:EQU)
  3. Stock Trades: Sold Equal Energy
  4. Stock Trades: Bought More SkyWest Energy, Sold Primary Petroleum
  5. Stock Trades: Bought Cequence Energy (TSE:CQE)