I drained much of my remaining cash position, adding to BAS and CCJ.
I’m committed to a holiday rally. I have only a trace amount of cash left. I have not dipped into margin trading.
If a bottom doesn’t materialize within a week to a week and a half, I will reassess.
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Are you not concerned with the Head & Shoulders (August-present) in BAS? I don’t follow the name, but the chart pattern looks a lot a H&S, which is part of a larger bear flag… thoughts?
I am not concerned. BAS is a play on the resurgence of natural gas pricing.
BAS earnings were written down because of a slowdown in the natural gas space. I purchased the name because I felt it was a fair cost for the opportunity of those concerns not being realized.
Today, natural gas is hanging around $3.55; well off the lows. Should pricing continue to shore up, drilling will pick up and the slowdown BAS’ executives have voiced concern over will not materialize. The gains will be large.
If natty prices don’t spur renewed demand for extraction, or prices recollapse, then BAS is currently roughly priced at fair value, plus or minus 10-15%.