Sunday, September 25, 2005
Portfolio sees out Hurricane Rita
Well, Hurricane Rita came and went without causing any major damage to Texas and Louisiana. In anticipation of the storm share prices in the insurance sector fell last week as the market feared a Category 4 or 5 storm hitting the gulf coast.
The option to sell of course existed, but catastrophic storms of the magnitude of Katrina are the exception, not the norm, I decided the balance of probability was in favour of hanging on rather than speculating on storm damage. Chaucer and SVB were very cheap prior to the Rita warnings started to appear now I expect this discount to unwind next week and the sector to advance next week in a relief rally, especially SVB which is the cheapest share I have seen in a long time at 30p to buy.
Dana Petroleum announces interim results on Wednesday, I'm expecting the next week of September to make up for August's losses and more.
The Artful Dodger
The option to sell of course existed, but catastrophic storms of the magnitude of Katrina are the exception, not the norm, I decided the balance of probability was in favour of hanging on rather than speculating on storm damage. Chaucer and SVB were very cheap prior to the Rita warnings started to appear now I expect this discount to unwind next week and the sector to advance next week in a relief rally, especially SVB which is the cheapest share I have seen in a long time at 30p to buy.
Dana Petroleum announces interim results on Wednesday, I'm expecting the next week of September to make up for August's losses and more.
The Artful Dodger
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