RE:Bought some sharesYes I'm super optimistic. Colombian peso closed at around 5100 to the US dollar today going up like crazy and yields on Colombian 10 year bond shooting up as investors divest of anything Colombia since the leftists took power. Yet fec sp solid as a rock. I expected them to be affected by the current governments hostility towards the private sector especially hydrocarbons given that Colombia's new vice president is a radical environmentalist. She has all but declared war on oil&gas. Something is supporting fec and oyl. Gotta be their prospects in Guyana.
My friend in Sherwood Park, Alberta a retired company man, tells me that Canacol has a project in the works in Colombia. I wonder if they'll follow through. He asked me if I'd invest in Canacol. I replied no way but that if he wanted Colombian exposure with big possible upside then to take a look at fec instead. He reckons that Canacol is a great deal right now because political risk is depressing the sp but that the risk would abate once the leftists realize that if they want tax revenue then leave the hydrocarbon producers alone. That got me wondering if there was a discount baked into fec's sp because of political risk. If yes, then once the risk abates then the discount may turn into a premium and sp will go up.