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NAL Energy Corporation T.NAE



TSX:NAE - Post by User

Comment by Hogwildon Dec 12, 2011 5:27pm
330 Views
Post# 19314796

RE: Just an observation

RE: Just an observationForget speculation. It is all just hot air (or its electronic equivalent). The last few days reinforce my belief that the recent price drop is due more to tax loss selling than anything else and that, as the end of the year approaches, this is petering out.

Today on above average volume and in a sour market, NAL held on very well. It dipped to $6.97 as the indexes plunged but then, as they recovered somewhat, it rose again to close down just a few cents. This would point to much more interest on the buy side, something we have not seen in some time with a lot of the selling just the usual panic reaction that affects many smaller investors.

I have not sold my position as I saw no good reason to do so and the dividend is good but I also saw no reason to buy as each day brought new lows. That appears to be coming to an end. While there is no good reason to expect quick appreciation, a solidifying price base with a 12% yield does give something to consider. It is especially interesting within a TFSA. A 2000 share investment now just over $14K would yield $140 per month tax free. Even with the capital not appreciating much that is a nice return. In a taxable account  you get the dividend tax credit. RRSPs are taxable too, just tax deferred but they do not get the benefit of the tax credit.

HW
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