Friday, August 31, 2012

Some Nexen Again

I started to build a position in Nexen, Inc. (Ticker: NXY) again by picking up a few shares this morning at ~ $25.28. Earlier this month, I sold out my entire position at ~ $25.90. I'm looking for a potential net gain of 8.78% by the end of the year (~ 26% annualized return). The Canadian regulatory agency has started the review to determine if this deal is a “net benefit” to the county. This deal clearly provides a “net benefit”, but there’s going to be a lot of political posturing on both the Canadian and US side. In the end, I see a very high probability that this deal gets done.

Edit: Ok, I have itchy fingers today. I sold at $25.32 and bought back at $25.26 and $25.22. This currently makes up ~ 12% of my portfolio so it's an ok position for now.


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