Vaalco Energy: Oil Market Looks Poised For a Pullback

Sep.24.07 | About: VAALCO Energy, (EGY)

Friday afternoon I decided to take my profit in Vaalco Energy (NYSE:EGY) and sold my entire position at $4.84. I continue to like the exploration story here, but with oil showing some weakness in the afternoon after moving straight up for the last 10 days, I thought it prudent to take my profit and free up some liquidity in the short term. My sentiment is that if oil comes under further attack after the weekend, it could spell a pullback for EGY as well. The bottom line is that I believe the upside/downside risk here is probably neutral going into next week, and so it was no longer compelling to hold the stock while the oil market looks poised for a pullback. Taking profits never hurts, and this was a very solid gain, especially considering the leverage that was employed in the trade.