Hi Mac B,Right today, a bit of cash in the bank looks...

Hi Mac B,

Right today, a bit of cash in the bank looks attractive, but I think that New York has already factored in two interest rate increases and will soon come to grips with paying a little more for oil. It may be that oil price increased will do the job of interest increases.

Either way, I expect that things will have settled down by the end of June so now could be a time to reposition.

Owning oil exploration shares in times of increasing energy prices seems to be good sense, providing the overall market remains stable and adjusts gradually from the current earners to oilers. This transition is slow to start so now is a time for taking some sort of position in energy. When the market responds it will do so quickly and it might be a bit late to get the best seats.

PCL has huge potential.Four company makers in the wings but all more than 12 months away. The amalgamation of PCL and Afrex is yet to reflect in valuations. I personally see the whole deal when completed worth 30-35 cents per share. If you wait for WPL to go the next step, a lot of the risk will be gone but I'm thinking, so will the profit.

BUY has similar potential. Again, four company makers.
I think that BUY is oversold atm. The Nyuini well dissapointed and a few sellers came out of the woodwork. Drilling the Sydney Offshore Basin is now closer than we think. December is only 6 months away and activity will start soon with release of the seismic.Look at Electro Silica. They have a very informative web site. I can't recall when a drilling rig was last off the major population base of Sydney-Newcastle and this alone will get press excitement. Couple this with high oil prices and I have the feeling that the share price will surge.

Probably, I am heading a little more to BUY at the moment but I haven't lost any enthusiasm for PCL.

It's just my thoughts but I hope it helps.