New Addition to the Portfolio

Well it's not necessarily a new addition, but more of a reinstatement of one of my favorite companies. I have added Oilsands Quest (BQI) to my portfolio.

If you recall, I unloaded this company on news of the 'green' movement hitting Canadian oilsands. I think that that has been correctly priced into the stock, and at this price, this stock looks very appealing.

Why do I like BQI? They have the largest land holdings of any Canadian oilsands company. The have had great success in the exploratory drilling, and the interest in these oilsands has been accumulating both globally and domestically. Statoil has recently purchased a Canadian oilsands company, and now there's rumors that Canada might be building a nuclear power plant for the oilsands.

Oil also looks poised to explode. It looks technically strong, but what about the geopolitical wild card? There have been a flurry of recent oil related terrorism in the news. Don't forget about the mess in Nigeria. Also, Doug Casey reports that our oil imports from Algeria, Nigeria, and Angola now account for 26% of our total oil imports. These places are hot beds for violence and the oil flow out of these countries is very vulnerable to interruptions. And what about a hurricane? Don't forget we are amidst La Nina, El Nino's less extreme sister. Anyone one of these items would spike the price of oil, but a combination of the above mentioned events could be cataclysmic.