Stock Trades: Sold Emerge Oil and Gas

buy-or-sellToday, I sold 1,000 shares of Emerge Oil and Gas (TSE:EME) at $2.75 from my TFSA account.

In at $2.71, out at $2.75, profit =?+0.74% after commissions.

Stock Trade Commentary

This is NOT profit taking. Here I am selling EME again in less than a month. It was EME?s new 52 week low price that made it attractive at $2.71when markets were dropping. However, going through recent releases, I noticed that more than one company reported widening heavy oil differentials in Q1 compared to last year?s prices impacting the balance sheet. Emerge is 87% heavy oil weighted and their recent infrastructure investments won?t help the bottom line until Q2.

In the short term I see no catalysts for EME. Their Q1 report due in June should not be expected to deliver any surprises. As much as I still like EME for the long term, no need to tie money intended for a short term trade if I suspect a new 52 week low might emerge in the coming weeks. I just might buy it again at a lower price if it becomes more attractive or just take on a new opportunity.

Even though no losses were registered, this should be considered a failed ?surgical strike? as it did not accomplish what I had in mind. Note to self: do not invest in a company when it?s in the penalty box for a short term?time-frame.