Ahh… summer nights. To feel the wind in your hair, to pick a 3-bagger in one month and to feel the rush of winning silver bullion. Member ‘wtanchak‘ can now tell you all about it. The long-time member (of more than 9 years and 41 weeks) has finally pulled it off.
His selection of Resolute Energy single handily delivered the crown in August’s Stock Challenge.
Resolute Energy’s stock closed at $6.87 on July 31st. By August 22nd, it hit a high of $20.48 per share. What a rip!
Resolute Energy – 3 Month Chart
As impressive as the share price performance in August is the flood of liquidity that hit this stock just days after the Challenge began… After averaging about 500,000 shares per day leading up to August, volume exploded from 251,000 shares on August 5th, to 1.6 million shares traded on August 6th. Since then, Resolute Energy has traded over 65 million shares. To put this volume in perspective – more than $1 billion worth of Resolute Energy stock exchanged hands between August 8th and August 31st. Incredible.
Resolute stock flourishes in changing oil and gas sector
While oil did catch a bid in August, it stayed in the $40 per barrel range throughout the month. We predicted earlier this year in an article titled Oil is Peaking for the Year that oil had seen its highs and would not have a significant breakout as production and global supply remain elevated.
A key to the breakout in Resolute Energy’s shares was its lease operating expenses, which dropped to a record quarterly low.
Nicholas J. Sutton, Resolute’s Chief Executive Officer, commented on August 8th:
“The second quarter of 2016 was particularly strong for Resolute. Sequential average daily production for the quarter increased 32 percent to 11,865 barrels of oil equivalent (“Boe”) per day, and we reduced our lease operating expense (“LOE”) to $14.46 per Boe, an eight percent reduction compared to the prior year period and a thirteen percent reduction sequentially. As noted in our release on July 8, 2016, our exit rate production for June was 15,400 Boe per day, an all time record for Resolute.”
Click here to read the entire press release.
TSX Venture trades flat in August
August, like June and July, was another solid month in respect to the combined average returns of all participating members in our monthly Stock Challenge. The TSX Venture finally paused after rising to a high of 848.13 mid-month.
The exchange closed at 796.17 on July 29th and 785.75 today, the final day of trading on the month. So, unlike June and July, strong returns were, in large part, due to our members’ overall ability to select winners.
Pinnacle members ‘beata3550‘ (past Stock Challenge Champ and prolific Top 10 finisher) and ‘funtime‘ gave ‘wtanchak’ somewhat of a scare on the final days, but ultimately fell short of the victory.
beata3550, with his second place finish and 59.00% combined average return for August, will be sharing the People’s Champ award with 5th place finisher ‘silverandgold’ and his 46.67% return.
silverandgold was one of many Challengers who selected Sirios Resources for August and for a moment held the lead and the glimmer of hope the silver bullion would be his! What a run Sirios had this month…great try to all the members who selected and profited from this junior in August.
The People’s Champ is a selective award associated with Pinnacle’s Stock Challenge, and is given to the participant who failed to win, but nonetheless, made a name for himself. It comes with no prizes and unfortunately, no glory.
Despite the many stellar performances, Pinnacle member ‘wtanchak‘ emerged as the one true champion.
Past Stock Challenge Champ and long-time member ‘Rainendown‘ put up a noteworthy 38.60% combined average – good enough for 7th place.
August’s Stock Challenge Top 10
Our champion receives the winner’s only Pinnacle Package – which includes the finest of garments fit for a champion: The Stock Challenge Champ Hoodie and a Pinnacle Digest dri-fit golf shirt (for those afternoons on the links). Wear them with pride wtanchak!
Member wtanchak will also receive a Northwest Territorial Mint 10-ounce Silver Bar.
Congratulations to our new champion and welcome to the Stock Stars Hall of Fame! We look forward to watching you compete in future contests!
Good luck to everyone in September’s Stock Challenge, which begins on Thursday.
August’s Stock Challenge Statistics:
Challengers: 234
Highest Return: 67.57%
Lowest Return: – 29.18%
Average Return: 2.49%
Previous Champs in the Top Twenty: 3
