Tuesday, 9 April 2013

Colombian Oil Play

I arranged to invest additional money in my Colombian oil company and the price jumps a $1.52 a share. Turns out they reported a significant amount of oil reserves. In my opinion the stock is undervalued by about 50% and I'm still going to invest. I just have bad timing. The stock was punished because of a negative arbitration ruling and political instability in the country.

Today was a good day on the market, after a brief period of stock corrections. I'm thinking of renaming my boat to reflect the fact that I'm a Colombian Oil Barron. I don't want to draw too much attention to myself, but that can't be all bad.

Canadian oil stocks are still dragged down by the inability of oil companies to move the oil to refineries and the high cost to extract oil from tar sands. The dark cloud over the Keystone pipeline and the federal government's refusal to to take environmental concerns seriously.

The oil sands have become the new "baby seals", dragging down Canada's international reputation. It is considered dirty oil. It is not entirely fair, as the US is still heavily reliant on coal. But when you have Harper and his lackey Baird representing Canada abroad, it is not going to help.

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