MMR

This is my biggest positive but potentially my biggest negative in my portfolio. The company has been releasing announcements after announcements stating the prospective amount of gas to be discovered in offshore Sydney Basin.

I have already sold some parcels so that most of my capital has been recouped. On 5/10/2010, there was an entitlement plus new shares on offer at 50c. I bought all my entitlements and applied for doubled that amount of new shares. I got the lot.

Today, it gave me all the alpha I needed. It has gone up to $1.08; more than double in 7 weeks. My cheapest parcel was bought for 5c. Even cheaper still are my options... free and worth 86c. I was going to sell a parcel for 90c but I pull it out when I read a new assessment suggesting that gas find is highly likely. If nothing is found with the first drilling, well, the shares could tumble like a deck of cards.

I wonder whether any of my readers have bought MMR.

The same could happen to PCL.... I wait for the first drilling result!