Today, I bought 7,500 shares of SkyWest Energy (TSXV:SKW) at $0.83 in my non-registered account.
I also bought 10,000 shares of Reliable Energy (TSXV:REL) at $0.485 in my non-registered account.
Stock Trade Commentary
When I liquidated my holdings in my non-registered account a couple of days ago, I announced one last push would be required before disbanding the account. I initially wanted to buy 20k shares of Reliable Energy but only managed to get 10k filled because I was too cheap to pay an extra 0.5 cents on the other 10k (it happens). So I decided to go with SKW for the second holding as I believe the next catalyst is imminent just like REL.
I decided to go with penny stocks to kill any possibility of margin usage. In my opinion, if the market was to turn sour all of a sudden on me I wouldn’t really care because I know that no matter how you look at any of these 2 stocks, they are undervalued (in my point of view). So if my price targets get hit in 2 weeks that’s great and I will exit with my profit but if it will take 2 years, that’s also fine because I have no margin to worry about. Both companies have very little or no debt, production, reserves and a great land package. Operational updates are due before the end of February and I am expecting positive results for both.
What do you think about these picks?