Stock Trades: Sold Rock Energy and Bowood Energy

Today, I sold 1,000 shares of Rock Energy (TSE:RE) from my HELOC account.

In at $4.43, out at $4.49, profit = +0.90% after commissions.

I also sold 2,500 shares of Bowood Energy (TSXV:BWD) from my TFSA account.

In at $0.51, out at $0.53, profit = +2.37% after commissions.

Stock Trade Commentary

Obviously, I was not taking impressive profits by selling these 2 stocks, just pulling out the money at no loss. There is nothing wrong with the fundamentals of Rock Energy and I would consider buying back at a lower price. However, it has been an underperformer so I decided to let it go. The mistake I did, yes I make mistakes too, was not to verify if they had any hedges on their natural gas production. It turned out they were un-hedged which is why the share price took a nice hair cut when natural gas prices were hitting one low after another.

As usual, right after I sold, the price shot up to $4.64 just to piss me off. It is sitting around $4.40 as I write this so I feel better. I probably should have waited a little bit more before selling RE but there’s always another time to get back in or just another opportunity waiting.

Why did I sell Bowood energy so soon? Here’s why: I have been trying to reach the CEO for 2 days. I left him a message and was disappointed he never got back to me. I had questions to ask since I needed to expand my due diligence on the company. When I got no answer back I decided to sell and move on.

I got the call back today 2 hours after I sold. The person who called me back on behalf of the CEO was very helpful and took the time to answer all my questions. I have not bought back in simply because the price has moved and I do not wish to pay more for the same position. If an opportunity appears and I still have the buying power I will probably buy back in.

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