Yesterday, I bought 650 shares of TSE:SPE Spartan Exploration at 3.15.
Sold 800 shares of TSE: FVI Fortuna Silver (Silver)
In at 3.34, out at 3.36, profit = +0.025% after commissions.
Stock Trade Commentary
The amount of Fortuna Silver shares sold amounts to 20% of my total number of shares, still holding 3000 shares in total. The price hit 2.50 during the day but I had already sold way before that. As usual my market timing sucks and I always miss those potential profits. On the other hand, it’s nothing to lament about really, when I sold at 2.36 the price had already moved up substantially from 2.19 and I was executing the plan I discussed previously. The frontline was to be straightened since FVI was tying up a lot of money, selling at loss was not acceptable since I know what I invested in. The plan executed perfectly and I was able to proceed with consolidating my position in SPE.
SpartanExp will be featured here shortly; it gives you a 2 in 1 exposure to the hottest Canadian oil plays right now, the Cardium and the Bakken. I was able to average down to 3.17 a share for my position which is excellent given the share price history. In the past I was thrilled when I got filled at 3.35, I did well in locking those profits and now I am back in with a new position.
Why did I pick SPE instead of any other stock like DEE or MEL? Simply because it was the only one that did not recover from the weakness of last week. It was like a low hanging fruit waiting to be picked. Did any fundamentals change since 2 weeks ago when the price was above 3.60? I don’t think so, oh yeah; they licensed a new well in the Cardium. The volume is light and the company is not well known among retail investors along with oil prices at 75$ explains the current weakness.
If oil prices were to fall further, OPEC will be swift in cutting daily production targets and support the price. So I am not worried of further weakness. Once Mr. Market recovers from his sovereign debt worries, Oil prices will be back above 80 and he will have to pay me a premium for those shares!
Silver and Gold seem to be the flavor of the week, everybody is flocking to these metals on Europe’s debt concerns. Yesterday, Silver prices broke 19$ an ounce, since 70% of my portfolio is currently Silver weighted; a repeat of yesterday will help me post excellent returns for May.
How about you dear Reader, have you been buying any stocks on weakness?