A FEW GOOD STOCKS?

TIW

Sold my entire position of TIW today, not without a great deal of disappointment. I hold this position for almost exactly one year and have on 11.5% to show for. It’s hardly worth all the pain and sufferings in between. This is second time this year a stock got taken out with minimum premium. Oh well, at least I did not lose any money. On the other hand, I do want to continue to raise some cash as the market just does not feel well. (I also disposed GLK for a small gain).

LYO

Add some LYO here. Trend in the material sector remains positive, and valuation is still modest. LYO also has the refining business, which partially offset its chemical business. It has decent dividend yield. Canadian dollar is rather strong here and I would not be surprised if there is a correction. So I feel rather comfortable to own US securities. This probably will do better than NCX.

POC

POC announced its 2004 results and it promptly went down by 3 points. The first reaction was that production growth was flat and cash flow was down by about 22%. However, the forward guidance for 05 and 06 is very strong. Production is expected to growth by 30% in 2005 and double in 2006, and double again in next five years to 40K boe/d level. CF increased by 60% in 05 and probably will double in 06. More importantly, RLI is more than 20 years with 05 production. If the company could deliver this kind of production growth, I could see a double in 06. I ventured out to pick a bit more.