Tuesday, April 15, 2008

Bookkeeping: Taking Profits in the Energy Patch

It has been an amazing run of late in the oil service names, drillers, and natural resources so I am taking another layer off, anticipating a selloff relatively soon. That said I've been saying that for a few days now and they just keep ticking up. It has been nice to see the deep sea oil drillers FINALLY partake in a rally... they've been the ignored group for much of the past half year. I am cutting back ($4-$6k sells) in the following names as I am starting to get antsy on the duration and magnitude of some of these moves without any pullback. (and yes the underlying fundamentals are clearly fantastic)
  1. Sector oil services: National Oilwell Varco (NOV), Core Laboratories (CLB)
  2. Sector deep sea oil drillers: Atwood Oceanics (ATW), Diamond Offshore (DO)
  3. Sector natural gas: EOG Resources (EOG), Cabot Oil & Gas (COG)
On the flip side of that... in a somewhat related trade (not energy but "commodities" in general) - I am increasing exposure in Ultrashort Basic Material (SMN) to just under 4% of the fund as a "hedge against myself"

Long all names mentioned in fund; long Ultrashort Basic Materials in personal account

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