Matthew Kerkhoff, options expert and editor of Dow Theory Letters, continues his 14-part educational...
m100's Penny Picks
01/30/2004 12:00 am EST
For his Marketocracy Stock Alerts service, Ken Kam, notes, "We rank the stock picking ability of our 60,000 investors and segment them into the ‘best’ and the ‘rest,’ and then isolate stocks being bought by the best, while being sold by the others." Two speculative energy stocks fit the bill.
"Harken Energy (HEC ASE) is a micro-cap oil and gas exploration and production company, operating in onshore and offshore Gulf Coast regions of Texas and Louisiana. The best investors have been steadily adding to their position in HEC throughout December and January, as the price doubled from $0.60 to about $1.20. This followed the announcement in December that the company would sell non-strategic assets and repay all bank debt. Since that announcement, the best have doubled their holdings; HEC is now in the top 5% of the best’s portfolio. Meanwhile, the rest trimmed back their position by 7%.
"CanArgo Energy Corp. (GUSH OTC BB) is our latest stock alert. This is an integrated oil and gas company operating predominately within the Republic of Georgia. The ‘Best’ investors increased their holdings by +68% while the 'Rest' decreased holdings. The best first established a position in GUSH in mid-November at prices between $0.31 and $0.35 per share. Since that time, the best have increased their position in GUSH six-fold, including making significant purchases at the $0.60 per share level.. Meanwhile, the 'rest' trimmed their holding in GUSH by 56%."