Stock Trades: Sold Delphi Energy

Today, I sold 2,000 shares of Delphi Energy (TSE:DEE) from my non-registered account.

In at $2.23, out at $2.20, profit =??-2.01% after commissions.

Stock Trade Commentary

Unfortunately, the plan to pull out the troops from this stock at no loss failed to materialize. But it is better to take the small loss now than to potentially take a bigger one later. Delphi just released their reserves report for 2010. The report is full of nice numbers like increased oil and liquids reserves by +89% and increased undeveloped land by 42%. However, the fact remains that DEE is currently 77% gas and looking to exit the year at 73% gas. Talk about treadmilling as they will be working hard to simply keep their operating netback at the same level. They still have some hedges in place for 2011 but that is not enough to protect the share price when (not if) natural gas prices get back to wiping the floor again once winter is behind us. In case you didn’t notice, I am bearish on NG for most of 2011 until the fundamentals change.

The plan was to exit NG weighted stocks before winter is over and it has been executed. Just like CQE went on to $3.00 after I sold at $2.20, Delphi remains a good company and might go on to $2.50 in the coming days but that will not matter. Greed can easily undermine your trades and result in substantial losses more often than not. Executing the plan is what it’s all about, no emotions should be allowed. The loss represents the rearguard party that was not able to make it out, RIP kamerads’