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catoismymotor (41.70)

Exchanging all of NEP and half of CGA for more SLW.

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May 04, 2010 – Comments (6) | RELATED TICKERS: SLW , CNEP.DL , CGA

Exchanging all of NEP and half of CGA for more SLW.

 

May 4, 2010

 

I think I gave NEP a fair shot. I did what DD I could and listened to the combined wisdom of the group. Since my purchase they dropped 20% with today’s hit taken into consideration. That combined with NEP dragging their heels with issuing reports and the stability of the Chinese real estate market I decided to let them go.

 

I have also given CGA a fair shot. I like this company. I understand companies that reside under the umbrella of fertilizer producers are not doing so great at the moment. I can forgive that. But as with the above mentioned NEP, the Chinese real estate question is one that I can not ignore. I consider CGA to be almost as a boutique fertilizer company. And boutiques are not famous for thriving in economic storms. They still have the blessing of the Chinese government that makes them tax exempt for the next four and a half years. That is definitely an advantage not to be ignored. I decided to sell half my shares. The remaining half are in my IRA and will reside there as a LTBH investment.

 

Today I used my DCA funds coupled with the proceeds from the sale of NEP and CGA to double my position in SLW. I believe the price of silver will double in the next two years due to inflation concerns and realities caused by events already in motion in the USA and EU. Afterward the price of silver will remain higher than in years past due to it being used more in electronic devices. Should all that come to pass SLW is best positioned reap the rewards.

6 Comments – Post Your Own

#1) On May 04, 2010 at 10:23 PM, ChrisGraley (29.67) wrote:

A very sound thought process and I think that you made the right choice.

 

I hope you bought SLW on the dip today.

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#2) On May 04, 2010 at 11:18 PM, catoismymotor (41.70) wrote:

Chris,

I did. I bought it when it was down around 6% at noon. It was all luck. Last night when I decided to move I did not know we were in for a down market day.

Cato

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#3) On May 05, 2010 at 9:27 AM, SCBergman (32.66) wrote:

I have eliminated my position in NEP as well due to their inability to get it together for reporting.  They may do well long term, but all I see is risk and a lack of credibility.

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#4) On May 06, 2010 at 3:17 PM, catoismymotor (41.70) wrote:

Today I see more proof that luck was in my side.

Chris, Thank you.

SC, I sgree.

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#5) On May 28, 2010 at 3:08 PM, ragedmaximus (< 20) wrote:

NEP JUST TRADE HALTED NYSE DELISTING anyone know what's going on just when I thought this might be a good play in oil cause nobody tells CHINA what to do like all the usa oil co's and moratorium on drilling this happens CHINA NORTH EAST PETROLEUM gets halted today!

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#6) On May 28, 2010 at 3:19 PM, catoismymotor (41.70) wrote:

Rage,

This might help answer some questions:   http://biz.yahoo.com/e/100527/nep8-k.html

Cato

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