PCL

If the secondary target hits oil or gas, it means PCL will be my most valuable stock in my superannuation portfolio.  The first 250,000 shares were bought at 1.3c  in Apr 2009 :-)   ... the virtue of being a patient and faithful investor; I have never sold any PCL shares.

This stock has to compensate for failures in other oil and gas exploration stocks over the years.

When the stock collapsed recently in May, I thought I was brilliant to pick my last parcel at 13.5c.  I was wondering who was the idiot who sold his/her shares to me.  Then just last week it fell below 11c and I thought maybe I wasn't that smart after all.  One of my readers was smarter; he bought in at 11c late last week. Now we are both smart but he is smarter (so I am making him pay for coffee next week!).  Unfortunately, one reader wasn't so smart; he sold at 6c last year, at a profit.  He might have bought back those shares but I don't know if he did or not. I bought more at 9.3c in Aug 2011.

If I own 0.01% of BHP, I will be a very wealthy man.  Unfortunately, PCL is still tiny but the prospect is huge.  This success is only from one drilling in offshore Kenya.  It has a few more tenements there and also in Namibia.  There are 1.15 billion shares on issue so I consider myself to be a "big" partner in PCL.

I am glad that I have bought another 5 parcels (including one rights issue) of PCL but at much higher prices than the first.  ALL are fantastic paper profit now.  The biggest risk is that now that gas is found, the Kenyan government will certainly change the rule to make it more difficult for the consortium to profit from it.  Corruption, nationalism and greed will start to show....