Energy Portfolio Update

I’ve held onto most of my energy portfolio.  For the record, here’s where it stands.  VLO is down 14%;  DVN is up 87%;  SPWR is up 189%; OPTT is down, but I bought more at $8.25 and it bounced back when they announced a wave farm in Australia, somy position is down about 5%.  Here’s a company with $106 million in cash at the end of March 2008, and a technology that could impact the world’s two worst problems — global warming and declining carbon assets — that you could buy for $100 million.  It’s not as good a deal as when you could buy $100 million in cash for $80 million, but it’s still got a pretty fabulous upside.

I sold WWAT at $1.13 after the chairman retired and it appeared to me that one large shareholder had too much to do with the health of the stock.  I wish I had sold at $2, but it’s at 55 cents now. 

STP more than doubled, then came down again to an 8% gain.  This behavior reminds me how industries get “hot,” then cold as the early traders bail out, and then the real building begins.  It’s hard to tell which of alternative energy companies will win, but we’re all losers if one of them doesn’t.

In the meantime, we’re witnessing the greatest wealth transfer in history.  Saudi Arabia takes in over $1.3 billion a day, and even they are worried about the effect of energy prices on their other holdings.  Is it possible for conventional energy companies to do poorly in the short term?

Published in: on June 24, 2008 at 4:23 am  Leave a Comment  

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