Yesterday, I sold 2 stocks:
Sold TSE: SPE Spartan Exploration (light oil)
In at 3.30, out at 3.61, profit = +8.8% after commissions
Sold TSE: DEE Delphi Energy (oil & gas)
In at 2.01, out at 2.87, profit = +41.8% after commissions
Stock Trade Commentary
I wanted to sell SPE but not at this price, what happened is instead of entering 3.65 as my sell price, I entered 2.65 so the order executed at market at 3.61. The damage is small and it teaches me a lesson for next time to review my order before I send it to the market. The reason I sold SPE is to lighten up on my margin account. I always like to keep reserves ready to dip in when opportunity presents so I cannot be 140% invested for long periods of time. SPE is a great company that I will feature down the road and I look forward to getting back in at the right price.
As for DEE, it was time to take those profits. The company reported its awaited operational update and the price reaction was lame to put it bluntly.
2 reasons would explain this reaction,
- Too many investors were privy to the news which explains the price increase seen during the week. Of course this is illegal but hey this is part of the stock market and the SEC isn’t doing much about it.
- The company reported that by the end of the year, it will be 24% oil & ngl weighted which, in my opinion, sets up the company’s share price for a rough ride this summer given the expected low natural gas prices.
Of course I could be wrong with my analysis regarding natural gas pricing and the company could get bought anytime by a rival since they are doing a good job. At least this time, DEE’s price closed below my sell price at 2.82.
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