I took profits on Altura Energy on Wednesday. Of course, the company announced excellent operational results the next day. I feared I missed another good opportunity to do nothing instead of selling a good stock.
The market’s reaction was positive. However, the bump was gone by Friday. The stock still looks weak in the short-term.
I am holding on Baytex Energy despite the rout. The company’s Canadian heavy oil operations will face challenges. However, Baytex already has crude by rail contracts in place for a third of its heavy oil volumes. And shares are priced cheap.
The exposure to international oil prices and US natural gas is also interesting. Funds flow from operations increase by twice as much when WTI oil prices increase compared to WCS oil prices.
I added to Gear Energy. Gear could defer capital to later next year should the disproportionate differential endures.
Disclosure: I am long BXE, GXE. Not for republication on Seeking Alpha.