Last Friday, I added some shares of Apache Corp. (APA) at $66.58. You might ask
"Mr. Friendly, why did you do that?"

Funny you should ask.

I give you the pros:
1.) About a 15% retracement of recent high.
2.) Earnings are stable in the $8.30-$8.40 range for the next two years.
3.) This makes the P/E around 8
4.) Oil and gas appear to be in secular bull. Apache is about a pure a play as you can get. Aside from actually buying oil and natural gas.

Cons:
1.) Oil played out?
2.) Earnings are then spiking and not a normal reflection of the company's long term earning potential. Thus the low P/E is an aberration and will rise in the future thus reducing the "bargain" factor.

I guess you can see where my analysis played out. This marks the fourth position I have in the oil industry. The others are TSO, COP, and EGY. Also, I own some oil shippers OMM, FRO, SFL. I guess I am more bullish on oil than I originally thought.

As per usual, APA represents about 1.5% of the entire portfolio. I plan on holding it until it hits the price of $130 or so. Or goes bankrupt.

************************************************************
With respect to the portfolio link, I can send you the percentages if you like. Email me at mrfriendlyalb at yahoo.com