I’m taking a day off, but wanted to note that TXCO jumped to $6.56 yesterday, from $4.50 when suggested here February 16, 2004.
I sold half mine.
Back tomorrow . . .
11am EST: Well, or back now with second thoughts. I think I was dumb to sell half yesterday. The guy who brought this one to my attention in the first place told me he was selling a lot of his — and I think he may have been dumb also. My thinking had been simply that a 45% gain in a year and a half isn’t terrible, and this stock had been such a laggard in its group . . . well, “sell on the news,” and all that.
But look at the news: “NEW YORK (AP) — Shares of Exploration Co. of Delaware Inc. ran to a fresh 52-week high Wednesday on news that the company sold off about 20 percent of its production assets in the Maverick Basin for $80 million.”
This tells me that someone who actually knows something about oil thought 20% of TXCO’s assets were worth more than $80 million (if not, why pay $80 million?) — so the 80% TXCO has left may be worth more than $320 million. Yet at the current $7.50+ share price (up a buck dollar from where I sold half yesterday), the company is valued at less than $250 million (including its long-term debt).
Point being, I hope you didn’t sell half first thing this morning — because if you waited even an hour or so you would have made more like 65% than 45%. And I am not rushing to sell the rest.
Back to my day off.
Quote of the Day
Money is a singular thing. It ranks with love as man’s greatest source of joy. And with death as his greatest source of anxiety. Over all history it has oppressed nearly all people in one of two ways: either it has been abundant and very unreliable, or reliable and very scarce.~John Kenneth Galbraith, The Age of Uncertainty
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