Wednesday, May 28, 2008

Time to unload BEXP

Finally, after two years of weathering painful times, Brigham Exploration Co. (BEXP) has made a solid turn-around and now we are seeing healthy gains.
BEXP was mentioned on 3/28/06 at 9.20, selling today at 14.30 brings us a 55.43% return in 26 months. I'm content with those returns. Time to cash in some gains.
Patience, again, has been rewarded.

Friday, May 23, 2008

Charting SUG

Southern Union Co. (SUG) has been rising from its lows of mid March and is forming a desirable chart pattern.

SUG, together with its subsidiaries, engages in the gathering, processing, transportation, storage, and distribution of natural gas in the United States.

The chart shows the stock price breaking above the 50 DMA (4/25/08), holding well with a fairly strong move towards the 200 DMA and a the long term declining tops line.

Some of the positive aspects are:
  • Volume at 889,000 average shares/day
  • Yield of 2.3%
  • Reasonable book value
  • P/E of just under 15

SUG, trading this morning at 26.42, could possibly add some sweetness to a portfolio.



Tuesday, May 13, 2008

EDS Being Bought by HP?

Hewett-Packard Co. has offered to buy Electronic Data Systems Corp. for 25.00 per share in cash. That transaction is expected to be completed by the end of the year.
Under those conditions, we would realize a 10% return in about 12 months from the original price of 22.75 mentioned on October 10, 2007 and a 30.4% gain over the updated comment on May 3, 2008 (10 days ago) when the stock was trading at 19.17.

Fortunate for those of us who were patient enough to hold on, not panic and apply a cost averaging approach during some tough times.

Friday, May 09, 2008

Is it Time for KBE?

On October 4, 2007, I wrote about Exchange Traded Funds (ETF's). The main focus was on KBE, an ETF investing in large banks. Since then the stock value has dropped 25%, a choice that proved to be much too early for a near term profitable outcome. I have been hanging in there knowing that the negativity in the sector would, in time, reverse its course.

I would tend to think that the bottom is near and expect most banks not only survive but thrive in years to come.

It is not the time to give up, better to wait and add to a long position in order to bring the average cost down and participate in an upswing. Meanwhile, a 6% dividend should keep us in the game and with a price of 40.31 it can be a good place to reload.

An interesting article with an in depth look at KBE can be read at:

For those of you who have patiently waited out this deteriorating situation, expect better days ahead.