Stock Trades: Bought More Delphi Energy (TSX:DEE)

Today, I bought 1000 shares of Delphi Energy at $2.12 in my non-registered account.

I am currently holding a total of 2000 shares at an average price of $2.23.

Stock Trade Commentary

Natural gas stocks were bleeding today. Was this an opportunity to buy or did I completely shoot myself in the foot? The cold will tell; that is when it decides to show up. The latest figures for NG injections were above expectations. Total storage now sits at 3,683 bcf or 1.3% below last year’s level. It is still 8.4% above the five-year average of 3,397 bcf.

DEE is being abused because it is natural gas weighted. I will be waiting for their Q3 report to be released on November 8 which will include an operational update on their latest drilling of liquid targets. This should constitute the last purchase for now until another stock is let go.

I do not know to what extent my natural gas stocks will impact the performance for October, the month is not over yet and I am looking forward to winter. At worse, I will let them go at no loss if possible. We still get a winter out here in North America as far as I know and natural gas is still not distributed for free. Working through the supply glut partially depends on slowing down aggressive production expansion on the part of the majors and relaxing massive shale drilling in order to preserve the mineral leases. An economic recovery would also help!

Finally, the price of natural gas has become unsustainably low and will hurt a lot of companies. Near term gas prices are falling and the full futures curve are down as well. Many companies will have to cut their gas drilling budgets and focus on more profitable oil targets.  I will have more to say about NG once I review my portfolio.

Related posts:

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