Today, I sold 1,000 shares of Winstar Resources (TSX:WIX) at $3.18 in my HELOC account.
In at $2.16, out at $3.18, profit=??+46.03%??after commissions.
There’s absolutely nothing wrong with Winstar to justify my sale, this is simply profit taking. The company which I bought back at the end of July is still up for sale. The stock will certainly trade higher if??the company gets sold.?? I still hold a core position in Winstar in another account.
The junior oil sector has been languishing up here even though we have fantastic oil prices and an improving price for natural gas going into 2013. Tax loss selling season is upon us and it’s good to take advantage of ensuing fire sales. You could even tell it already started with Arcan Resources ARN.V 0.36 [-0.02], does anyone think ARNs collapse is a sign?
CIBC released a report downgrading ARN from $1.90 to $1.45 and down the stock went. CIBC is complaining about??initial??well results from ARNs southern land. Second Wave Petroleum SCS.TO 0.00 [N/A] ended up taking shrapnel as well since they are also a Swan Hills player. But the market seems to have missed or chose to ignore that SCSs land base is farther to the south. Contrary to ARN, SCS has no problem sharing a type curve for its wells and expects to have its full land??delineated??by the end of the year they need to show positive results on their SW and SE land block and its off to full scale development. Is this a buying opportunity with SCS? or is this just the beginning of tax loss selling?
What do you think?