Stock Trades: Bought Midway Energy (TSE:MEL)

Yesterday, I picked up 1000 shares of Midway Energy (TSE:MEL) at 3.01.

Stock Trade Commentary

There is nothing wrong with Midway Energy to justify the drop in price as far as I know and if you’ve been following my trades, you know by now that this is not the first time that I take a position in MEL. Their last Q2 update places them on track for a +30% increase in production by the end of the year with a 60%+ oil weighting.

It’s a shame I missed buying MEL under 3.00 yesterday. On the other hand, if the price is to drop further due to a weakened market, I will be picking up another block of 1000 shares. Between 70$ and 80$ a barrel, MEL is making good profits off their oil production.  I should be well positioned for their next operational update.

Yesterday, the Federal Reserve said it would take new steps to counter a weak recovery. It will be investing proceeds from mortgage backed securities into government debt. The USD will be hovering lower on a not so rosy outlook for the US economy which could turn bullish for metals.

Finally, I am in the “recovery has slowed down” camp and not the “economy is going into a second recession” camp. In the big picture, emerging markets are doing just fine compared to the US economy and with oil being an international commodity, they will be able to absorb the demand slack of the USA.

Are you considering buying equities if markets weaken further?

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