oil and gas weekly, page-6

I suppose it comes down to what sort of buyer you are and your timeframes.

I'm a 18 - 24 month guy rather than a 3 - 6 month person who wants a quick 20% - 30%.

What I try to do is find a small number of companies that I think have the management / territory (or IP) to make significant gains. I also make sure that the management have a strong alignment of interest with the shareholders interests (e.g. have put in a lot of $), and treat all shareholders with respect e.g. send a MD of a small company an e-mail and see if he / she replys and how they treat you. If they treat you poorly then normally they will treat your money the same!

Once I have my companys then I manage the risk across them by slowly buying / selling etc if I feel that one of the above has changed. I'm also big on doubling down when I think the market has missed the point (e.g duster) or is having a short term focus - e.g. SAE and the NY prospect.

Over the past few years I have done very well out of companies like AVM (just under 30 bagger, TOX 8 bagger and a few others) and are currently sitting in companies like BSM, CVN, COE, STX, COI, RMS, SAE expecting that 2 of them will turn into 5+ baggers, 2 will do 2-3X, 1 will stagnate and 1 or 2 will fall away over the 18 - 24 months.

Overall though I come out well ahead with no real stress, based on cutting them loose when they non deliver and letting the good ones run

I also sold out of my COIO's as I couldn't see COI being able to control some aspects enough (e.g. weather...) to be able to give me a level of comfort that they will be over 40c.

Overall though I still believe that they have solid management and great territory, but it is taking a bit longer than expected to mature these up.

The trick though is to have a balanced portfolio and to make sure that you are playing with money that you can afford to drop 10% and not need for the 18 months.