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
Most of the world's Big Problems have a common denominator: waste. In every nation and every community and every company and almost every household, there is waste of money, energy, resources, and human potential. Fretting won't change this. Action can. It's also more fun.~Hunter Lovins, The Rocky Mountain Institute
Request email delivery
- Feb 20:
WheelTug Doubles Its Order Book
- Feb 19:
Bernie Fans Should Like Mike, Too
- Feb 18:
Tom Likes Mike
- Feb 16:
- Feb 13:
The Opposite of A Cult
- Feb 12:
Be A Fanatical Optimist
- Feb 11:
You’re Paying $650 A Night; And $1 Trillion For 2.3% Growth
- Feb 10:
Another Note To Bernie Bros; And To Cult Member Lindsey Graham
- Feb 7:
Compare The Prayer
- Feb 5:
Overturning An Election; The State of the Union Is Factually Flawed
- Feb 20: