Setting Sail With Teekay

Feb.21.10 | About: Teekay Offshore (TOO)

Back on Jan. 1, I wrote about TOO as a blog post, which appeared as an article on Jan. 2. In the piece, I outlined the reasons that I felt TOO was an attractive proposition. I mentioned that I felt a pull back back to $18.60 was possible, although I felt it was still relatively attractive at just shy of $20.

Unfortunately, it kept climbing from that point, trading as high as $21.12 on Jan. 6, before slowly working its way back down. It should be noted that I have an aversion to "chasing" a stock. It touched 18.57 on Feb. 11, before rebounding again.

Still, there are times when the market rewards patience. Thursday, for reasons still not clear, TOO sold off sharply, hitting an intraday low of $17.93, allowing me to enter a position at $17.96. At this point, I've reached my intended level of energy related holdings in the portfolio, with 2 oil companies (PVX, STO), 2 oil/gas MLPs (MMP, KMR), and 3 tanker firms (TNK, TOO, and DHT). So far, only DHT has been a disappointment, skipping its last dividend a few weeks after I bought it.

Now its time to turn my attention to infrastructure plays.

Disclosure: Long TOO, TNK, DHT, STO, PVX, KMR, MMP