Torrent Energy was first covered in the OTC Journal back in the August 3, 2004 edition. That day, the stock closed at $.96. Later in the year I wrote an additional four or five editions on the company as they started developing a coal bed methane project in Coos Bay, Oregon.
The company has an outstanding management team, and could have a very good long term future.
However, as I write today’s BLOG, the stock is trading at $2.73 for a 184% profit over the past 11 months. I believe this is an outstanding profit, and should be taken. The stock could go a lot higher, but you have made a substantial return for taking an early risk, and now its time to let someone else take the risk from here forward.
If you are still holding this stock, take some or all of your profits.
I wouldn’t sell it all just yet if I were you. This is a producing company with great upside in a great sector without a ceiling at the moment. May pull back, but unless you just want your profit here (along with higher cap gains taxes)…I consider holding at least half for an even better gain. I’m all for taking gains with half, but most investors screw up by selling there winners and holding on to their losers. Backwards. jt
Editor: You could be right. If they announce a supply source for a significant number of cars, I will have made the wrong move. However, it has been my experience that most parabolic rises are greeted with some sort of pullback. My thoughts were purely technical, and not meant to distort my views on the long term prospects. I still believe the company has a window of opportunity to get a whole bunch of cars in the consumers’ hands, and establish a heck of a network along the way. Under the circumstance of selling 15,000 cars over the next year, I believe the stock is much higher.
Now that it is time to sell TREN, it appears that it is right time to buy OMNI, another idea of OTC back in 2003. Why is this microcap out of coverage now?
Editor: I don’t recall covering any stock which trades under the symbol OMNI, but I don’t remember every single one of them. I may have covered it briefly.
Comment #1 above is regarding Torrent but your response seems to be in relation to ZAP!!!
Editor: My apologies. I had a lot of comments to handle that day on ZAP- you are quite right. I agree with your view that most people sell the losers and keep the winners. I am guilty of that sometimes as well. Perhaps it would be a good strategy to hold half- if you bought under $1 you would have your capital back and then some. I still feel the stock could be a bit ahead of itself. They have not generated the results to justify the current price. However, four or five years from now it could be $20- they have an outstanding management team.
What would be wrong with holding TREN for the long run to see if the reserves end up being proven?
Editor: Not a thing wrong with the concept. Now the TREN has pulled back from the near $3 level, it might be worth looking at again. However, we had a triple on the stock in 9 months, and that’s why you buy stocks.
On your recommendation I bought TREN at 2,69$ all included since June,27. It remains now between 1.70 and 1.90. What are your advices ,looking forward to the year-end ?
Editor: Looking back through all the past editions, I can’t see anywhere I covered TREN at $2.69 other than to suggest taking profits. We published nearly all the editions on that one between $.80 and $1.25. I specifically recommended taking profits in the $2.80 range. Since then, I have lost track of where they are in the COOS Bay project. Perhaps the stock is a buy now- they have an outstanding management team.