Time To Sell Pacific Rubiales

As you may know, I published an article on Seeking Alpha saying that I will sell half of my position in Pacific Rubiales Energy. Now, because of further evidence that the company is much more in trouble than I previously thought, I believe it is time for me to sell the other half of my position in the company.

While the offer made by Alfa and Harbour is fair in my opinion, I believe the offer has really no chance of succeeding. The recent stock movement also indicates that the market believes the offer has no chance of passing the vote.

Therefore, I believe bullish investors should sell their stock now before it is too late. I will publish a detailed article on Seeking Alpha in early July, after my vacations.

TransGlobe Energy: It Is Difficult To Get Technical With Stocks

Remember when I called a sort-term pullback in the price of TransGlobe on April 24? It turned out well, but not for the good reasons.

TGL StockCharts.com June 10

Source: StockCharts.com

The stock did break the C$5.40 mark. However, the stock experienced a strong pullback because of the 1Q earnings. Getting technical with stocks can be rewarding. In the end, my reading turned out to be right.

Expect the company to trade in the C$4.80 to C$5.30 range until the fundamentals of the oil market recover. Be patient, it is only a matter of time.

Disclosure: I am long TGL.

Corridor Resources: Unloved, Unknown, With 2 Golden Options

  • Corridor’s natural gas business in New Brunswick will be profitable, despite the moratorium.
  • The company has a pristine balance sheet, with no debt and over $23M in cash.
  • It has a quick ratio of over 29, which indicates absolutely no financial pressure in the short term.
  • The market is completely ignoring the tremendous Old Harry and Anticosti Island prospects.

Click here to read the entire article on Seeking Alpha.