New Company in the Portfolio

Questerre Energy Coproration, I have considered this stock for a long time now and today i finally bought a few shares. I think that the price fell according to the general fall of the stockmarket in Oslo. I payed 12,60 NOK for the shares and I see a great possibility that the stock will break it's resistance of 13,20 NOK, perhaps already tomorrow. I considered the falling price on shalegas but in the long run I'm not that scared when it comes to Questerre. The stock has consolidated on these levels but I find it very possible for a soon break towards higher levels. QEC is a very solid company with loads of cash and an overall strong balancesheet, let's hope for a developing price of gas and this purchase will turn out to be a great investment. I have put a stop loss at 12 NOK. Please observe that the chart below is based on QEC on the Toronto Stock Exchange.

The market in the week to come

As we suffered huge red numbers in the end of last week, especially in Asia but also in Europe since we were struck by fear for an exploding credit crisis in Dubai. OMXS30 fell 3,3% during the thursday market and the opening was very negative on the friday morning. I have actually been waiting for a few percent down from the top so i tried to pick a few stocks in the opening. I missed some great opportunities because I couldn't sit in front of the screen later on but I was able to gain my possession in Astra Zeneca, Transcom A and WESC and as Dow Jones opened I was able to do the same in Citigroup.

As the markets developed after the information from Dubai my fundamental side got a little thoughtful. The information of that sort were able to pull down the OMX with more than 3% in the thursdays market and also to make the OMX open down with more than 1% in the fridays market. How much would this really effect us, if one of the constructing companies in Dubai decided to cut their payments? Can you flip that and say the reason that the market fell so hard is that it's actually overvalued? Although, my technical side saw a great situation of buying stocks in the short term.

You can possibly see the events as proof of the theory of efficient markets, that everyone gets the information at the same time and handles based on that. The thing is that when you mix this with emotions, you overreact.

To come to a conclusion: I think that the market fell last week during to an overreaction, but this doesn't mean that the coast is clear so take it easy out there.

The Crisis of Credit

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

This video "The Crisis of Credit Visualized" by Jonathan Jarvis is a fantastic explanation of a crisis that is hard to understand. Will we see another turn down in the markets as the financial crisis increases in Dubai, or is it just that on of the sheikhs had a cough? What is important to remember is that the market corrects these sidesteps, if we let the market work it´s magic.

The Grand Premiere

I must tell you that firing this blog off with a picture of something in the socialist colour really hurts. Although the red carpet is much like the socialist ideology, it will bring some clever people up the hill but they won´t reach the top without entering the blue hall. I am truly glad to see that you are with me on the red carpet and about to enter the hall of freedom.