Further to my recent review of Wild Stream, I’ve been watching for a good opportunity to pick up a position. Although Technicals remain neutral (notwithstanding positive seasonality), with the expectation of news on the 2 Beaverhill Lake wells, and 2012 Guidance to be received soon, along with the possibility of a takeover or a move to the TSX at anytime, I’ve decided to begin slowly accumulating a position. Perhaps I’m being over-anxious, as I would normally wait for a technical indication, but in this case, I feel there is a higher probability of a breakout to the upside based on fundamentals and thus I should at least begin to position myself. I will continue to watch the technicals and may set stops around the $8.50 level should Wild Stream break to the downside, but that is a situation I will have to monitor closely over the coming days. Should the break-out occur in the positive, I will continue to accumulate until I have a position of around 1500 shares, which I feel is a suitable risk exposure for my portfolio.
Today, I set a limit order for 400 shares at $8.90, which was filled. I determined $8.90 to be a suitable order price based on the stock’s performance over the week, and sure enough, when my order filled it was at session lows.
CanAccord Genuity has also raised their target on Wild Stream to $16.50, from $14, based on an increase in their expectations for oil prices in 2012. They now predict a WTI average of US$92.50 in 2012, an increase by US$7.50/bbl over previous estimates.