Today, I sold 2,500 shares of Second Wave Petroleum (TSE:SCS) at $2.70 from my HELOC account.
In at $2.48, out at $2.70, profit =?+8.36% after commissions.
I also sold 1,000 shares of Emerge Oil and Gas (TSE:EME) at $2.99 in from my HELOC account.
In at $2.95, out at $2.99, profit =?+0.68% after commissions.
Stock Trade Commentary
I missed my chance to sell SCS the last time it hit $2.70 because I was greedy, I wanted to sell at $2.75 and $2.73 was the high of the day. Sometimes greed costs you more than you think, in hindsight I could have sold it and bought it back last week when prices fell. No use in dwelling on the past, the important part is the lesson learned.
SCS should be close to releasing the results of their first BHL well that their JV partner drilled. While I believe this can potentially push the stock higher in the very short term, I?ll take my chances with the sell in the hope of buying back in the middle of spring breakup. I might be able to get back into SCS at a lower price if I add all the uncertainty from the upcoming end of QE2. Nothing wrong in taking profits and freeing some margin from my HELOC so I?ll enjoy my sell at $2.70 which is the high of the day so far.
Just a few weeks ago, I also had the chance to sell EME at a nice 8% profit but failed due to greed again. Well, the last catalyst I was waiting for has been reported. The results of their first Viking oil well are positive but the market seems to be indifferent, not the reaction I was hoping for. Now follows a long waiting period before Q1 results are out while the impact of the infrastructure investments for improving operating costs per boe won?t show before Q2. No point in tying up margin waiting for time to pass so I sold it at an insignificant profit but at no loss either and would look to get back in lower later on if possible. With these 2 transactions, my margin usage fell from $14k to $4k.
What have you been buying and selling lately?