Sunday, May 22, 2005
Ben Bailey and Dana falls trim returns
I'd previously reported 19% gains year to date. However, losses on key holdings in the last fortnight have taken a substantial amount of my returns away.
This is always the risk when holding such large positions. Falling oil prices and concerns over the ingerity of a sector peer have hit Dana shares hard. Any losses corresponding to the sector losing favour were compounded further with the news that drilling the Kenya acreage has been delayed further. Concerns abound the investment community the Dana doesn't drill often enough to deserve being rated and priced as an oil explorer. I share these concerns. Dana just doesn't drill often enough. Consider the Mauritanian acreage. This hasn't been drilled since the failed Pelican well in November 2003. Dana has performed brilliantly in increasing production from the North Sea but to sustain production more oil has to be found and they won't find any unless they get to work with the drill bit. My wallet is aching after seeing a 14% fall in a share that comprised 30% of my portfolio.
Ben Bailey has fallen back to amid fears of a housing market slowdown. The company continues to report positive trading however and we'll just have to wait for the interim results before a new appraisal is required. The shares have fallen almost 50p, or 10% so far this month.
Some sunshine came from the advance of Fayrewood. If you remember, I sold a huge portion of my Ben Bailey holding to buy Fayrewood shares at 112.5p in April. An impressive advance on Friday took the shares to 122p to buy, an 8% increase in value since purchase.
Opportunities remain in the market but cash to take advantage is in short supply. I think SVB, the insurer that currently occupies around a tenth of my portfolio is still worth investing in. If the price remains at its current level I will be investing further. Also, SOCO, the oil explorer, could advance significantly in the coming weeks as its Vietnam oil discovery is appraised further.
May looks like it will be my first down month of 2005. Let's hope not.
The Artful Dodger
This is always the risk when holding such large positions. Falling oil prices and concerns over the ingerity of a sector peer have hit Dana shares hard. Any losses corresponding to the sector losing favour were compounded further with the news that drilling the Kenya acreage has been delayed further. Concerns abound the investment community the Dana doesn't drill often enough to deserve being rated and priced as an oil explorer. I share these concerns. Dana just doesn't drill often enough. Consider the Mauritanian acreage. This hasn't been drilled since the failed Pelican well in November 2003. Dana has performed brilliantly in increasing production from the North Sea but to sustain production more oil has to be found and they won't find any unless they get to work with the drill bit. My wallet is aching after seeing a 14% fall in a share that comprised 30% of my portfolio.
Ben Bailey has fallen back to amid fears of a housing market slowdown. The company continues to report positive trading however and we'll just have to wait for the interim results before a new appraisal is required. The shares have fallen almost 50p, or 10% so far this month.
Some sunshine came from the advance of Fayrewood. If you remember, I sold a huge portion of my Ben Bailey holding to buy Fayrewood shares at 112.5p in April. An impressive advance on Friday took the shares to 122p to buy, an 8% increase in value since purchase.
Opportunities remain in the market but cash to take advantage is in short supply. I think SVB, the insurer that currently occupies around a tenth of my portfolio is still worth investing in. If the price remains at its current level I will be investing further. Also, SOCO, the oil explorer, could advance significantly in the coming weeks as its Vietnam oil discovery is appraised further.
May looks like it will be my first down month of 2005. Let's hope not.
The Artful Dodger
Comments:
Post a Comment
