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Harvest Energy: East vs. West in Terms of Oil

I owned HTE at around US$5 a share and was happy to get out at US$9.30. There are simply better stocks to own in the space.

As this article points out, the problem of demand destruction vs. supply destruction is viewed differently by the East and the West. We tend to think short term, while the East tends to view the long term picture. With the energy markets, a longer term point of view is the correct one. Demand will eventually overwhelm supply in the long run or any type of major geo-political event would create a short term spike and economic chaos.

There is a possibility that, good or bad, the Canadians may not want to sell a strategic natural resource to a foreign company. Thus, I took the profits.

That said, I took the profits and added to my positions in PWE, BTE, and PGH. Still love the CONROYS for the dividends and as a hedge against a declining dollar.