Sell or Not

[tripods68]

Stock symbol:
VNR
#shares 240
Break even cost $7.69.
Trading 1.999 this morning.


I've been thinking of selling at a loss ($1300) at $1.99. I will net $472 minus commission.

Buy it back 500 shares @ 1.999 for = $999.99 plus commission $7.00

Alternatively, I thought of buying more shares 260 shares @ 1.999

Any thought on this strategy. Feedback please?

[Jluke]

if you sell and buy back (under 30 days), you will not be able to claim the loss on your taxes - not sure if that is your goal.

why not just buy more and consider it dollar cost averaging?

or are you trading it and not holding long term?

[tripods68]

I like this stock long term. Its part of my ROTH portfolio so there will not be any taxable event.

I don't like seeing losses in my statements....the optic of losses just bugs me. I'm not sure if that make sense.

[Jluke]

I had a feeling it was in the Roth.

I see a lot of red in my Roth since I started that investing in 2014...

buy more or just turn off the computer.

If you want to buy, then you believe it will go back up so don't sell what you have - it's not like you need the money now.

You have many years for this stock to work for you.

[snafu]

tripods, can you see this as a life lesson? The stock and bond markets go up and go down, and you need to ride these waves. Have you examined whether your reason for buying VNR are still valid. What is the cause of this horrid loss? Ghastly management? bad product? world-wide drop in crude oil that has clobbered every oil stock and related industries? What was your anticipated sell price when you bought the stock? If you feel there is value in buying more, I presume you are not strapped for cash. Do you think oil prices will come back to $ 42. bbl? $ 55 bbl before you reach retirement?

In the future, I suggest you set a 'stop loss' as you make purchases. From my point of view, if you'd put the money used for VNR in a savings account, inflation in food costs, utilities, entertainment would have left you in a negative position too.

[tripods68]

In the future, I suggest you set a 'stop loss' as you make purchases. From my point of view, if you'd put the money used for VNR in a savings account, inflation in food costs, utilities, entertainment would have left you in a negative position too.

That's a good point. I'm not sure why I didn't have stop loss added to it...maybe it represent a tiny amount overall and just didn't care. I don't need the money other than it might take a while to recover, few years maybe. I might just add more shares.

[greenskeeper]

I'd buy more shares if you were intending to hold for the long run....dollar cost averaging

[JBinKC]

Lots of research needs to be performed here.

On the surface VNR is a very scary stock with lots of debt and currently carries a negative book value. This stock could very well be already technically worthless right now so getting something for it would be better than nothing.

This is what I would research before I would make a final decision what is the due date of its debt, its future hedged position for crude going forward (hopefully positive) and what is its break even costs of production and figure out its cash burn rate to determine how long they will survive before bankruptcy then its a timing gamble before crude rebounds.

Personally, I would sell and swap into something with some balance sheet safety that uses lower cost conventional production as opposed to higher cost shale production.

If you decide to pick something with no debt on its balance sheet like GTE then you can wait for the cycle to play out without a premium on perfect timing. If you are willing to shoulder country risk I would consider scaling into GEGYF as it is a lowest cost producer and technically has enough cash to buy its discounted debt.

[Nutria]

Down 30% since OP...

[clatoden99]

VNR long term; when prices do get better all those bank redeterminations get revised upward, increasing liquidity

[TexasHusker]

double up to catch up !