My first purchase of Vermilion Energy Inc. (TSX:VET, NYSE:VET) shares was in the second half of 2019 at around C$27.
I was chasing yield (whoa, 15% dividends!) and didn’t read financial reports (debt, what debt?).
Basically, I sucked at stock investments back then even more than I suck now. The timing was very bad, and COVID with lockdowns was just 8 months away.
My 15% dividends turned into 0% and the stock price dropped to as low as ~C$3 in the middle of 2020.
Anyway, I decided not to despair and sold my other two oil stocks, Whitecap Resources Inc. (TSX: WCP) and Ovintiv Inc. (TSX: OVV), for a small profit at the start of 2021, and averaged down the price of my Vermilion holding to ~C$12.
Finally, timing was great, at least for those 3 stocks involved, as can be seen in this chart:
Vermilion significantly outperformed both Whitecap and Ovintiv and, I guess, many other O&G companies as well as market indexes.
So, my C$12 stock almost tripled in price, and I’ve started to take some profits by selling shares here and there at C$30+.
I’ve sold a smaller half 😀 of my VET holding so far, and I just can’t decide what to do next.
There are too many variables involved, so, honestly, I have no idea what will happen to oil and natural gas prices in the future.
If I sell everything right now at ~C$32, my VET investment will actually make me more money than I make in a year with my games.
On the other hand, my average price per share is already negative, so anything I make is pure profit from here on.
My opinion: WAIT AND SEE.
I certainly can do that.