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Investment Analysis Clubs / Dividend Growth Investing
|Subject: Re: BBEP||Date: 1/11/2013 9:39 AM|
|Author: TomFoolNC||Number: 7765 of 9116|
BBEP is my single largest position at this time.
I originally bought 3/16/09 for $6.29 when I listened to a Seth Klarman interview where he talked about he company without naming it. At the time it was paying a 30% div and everyone expected they would have to cut it, which they did. He said what people were not taking into acct were the companies hedges, and it didn't matter if oil fell to $40 a barrel. Klarman is out of the stock now.
I added to my position 3 times since then. I like the company because.
- the dividend, dividend growth
- in the oil space (oil is a major component of my portfolio as an inflation hedge, dollar hedge and emerging market growth play)
- buying and producing from old conventional fields that are not popular now and too small for the majors
- I like Hal Washburn and the mgt
- disciplined acquisitions
for how stable the company is the stock tends to move around more than I would think it would. I sell PUTS on it when the stock drops and the div goes above 10%, I don't mind adding at those prices if I'm PUT to, which I last was in the latter part of 2011, giving me a net price of $16.15.
I've considered selling Calls many times at the top of the range (like now), but don't as the premiums are not that great and I don't want to lose the shares. I do think the top of the range may increase from here due to all the recent acquisitions.
Tom (long BBEP, short BBEP PUTS sold mid-Nov)
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