Last week I started buying Cree (CREE: chart, web, Y!), and in typical fashion the stock dropped (along with just about every other equity) $2 after my order filled.

So, what’s a guy to do but buy more?

Fundamentally nothing changed with the company, although they are well positioned to take advantage of whatever bogus “green” legislation the Obama Administration may conjure up (i.e. trying to make light bulbs sexy again).

A technical trader may suggest that I should have waited for the pending drop in the chart, but that’s really not my style.

I’ve started adding shares in increments of 10 to set a good average price, and will continue to watch the company develop and their products mature.

Energy, Investing CREE, Stocks

I’ve been doing rather well in my Roth IRA for the last year. I’m holding Provident Energy (PVX: chart, web, Y!), which turns a healthy 11% dividend and pays monthly, Duncan Energy Partners (DEP: chart, web, Y!), which recently increased its dividend by 2.5%, and my company stock, which has better than doubled over the last year.

Being in the oil industry, I think it’s safe to say that I’m overweight in oil and gas; which, at this point in time is not such a bad thing. However, down the road, I foresee a major pullback in crude prices, which will not be such a good thing for the industry.

Naturally, I don’t literally mean forget it. I just don’t want to have to watch the stock price every day with a twitchy trigger finger on the sell button.

I want a stock that I’ll hold for 2 or 3 years at a minimum, pays a bit of a dividend, but has tremendous room for growth, not only as an individual company, but I’d like to see a good forecast for growth in the sector too.

Here are a few options I’m looking at, for various different reasons.

Read more…

Investing, Stock Thoughts copper, metals, PCU, pharmaceuticals, quality stocks, schering-plough, SGP, southern copper, Stocks

Yesterday Provident Energy (PVX: chart, web, Y!) entered an agreement to buy out a privately held company with oil assets in southeast Saskatchewan for $79 million in shares.

The short end of this is that PVX is spending money to increase reserves, and add to their daily production. In fact, they’ll add 1,300 barrels per day of production, nearly all of which is crude. Provident’s proved plus probable reserves are estimated at 3.6 million barrels of oil.

“This acquisition provides excellent strategic and economic value to Provident, improving the quality and supporting the sustainability of our existing southeast Saskatchewan assets,” said Provident President and Chief Executive Officer Tom Buchanan. -Source

A side benefit to this is that 17,900 net acres of undeveloped land are part of the deal, and 100 gross drilling opportunities wait in the wings. To top it all off, the operating costs of the existing wells are under $5.00 per barrel.

This is a sweetheart deal for Provident in terms of reserves and increased production, and if you’re conservative, this is a 4 year payout on a $79 million in stock.

Not bad. Provident lost $0.33 per share today on the news combined with retreating crude prices… If I weren’t so overweight in the stock already, it would be an attractive time to pick some more up.

This smaller acquisition is on the heels of the Capital Energy Resources deal back in May.

Energy, Investing, Oil & Gas, Royalty Trusts, Stock Thoughts CANROYS, oil and gas, Provident Energy, PVX, Royalty Trusts, Stocks