A day after I wrote about my plays for 2008, I go a different direction! I added some Vaalco Energy (EGY) this morning. This is stock that I considered adding to my list yesterday, but I am loathe to recommend it because I lost my shirt on this stock in 2007. I started buying EGY at $7.00 as an investment and watched it move (in horror) below $4.00 before popping up to give me an exit point.Vaalco has been a "one-trick pony" with E&P operations based mostly in Gabon, Africa. They are well financed (a lot of cash on hand) and 2008 was always going to be the year when the company hit a few new wells and got away from relying on one major well. I expected 2007 to be an "investment" year with a stock price lead up to this year when they hit a concession in the North Sea, hit with an on-land concession in Gabon and finished the process of exploring in Angola.
It didn't work out that way, but the thesis is still intact. I picked some up at $4.58 and will add a little more on any weakness hoping to recover a little pride and some pocket money in the coming months.
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