Hitec bought a 10 % stake in Prosafe and a 10 % stake in Kvearner. Post evaluating the two companies based on my own criteria, while being highly biased due to Hitec´s investment I placed my bets. The stocks have performed horrifically, with Prosafe experiencing cancelled contracts and Kvaerner being mentioned in a potential corruption case (I am 99.9 % certain that Kvaerner does not have anything to do with corruption, however such things tend to be bearish for stock prices).
Prosafe is actually one of the worst performing Norwegian stocks since I invested alongside Hitec. Luckily I exited my position before it got to bad as Prosafe is a sinking ship in need of financial restructuring. I exited Kvaerner yesterday and reallocated my capital to the E&P company Hess Corp. I have learned my lesson and will not listen to anyone but myself when making up my mind regarding positions in the market going forward. You live and you learn. Luckily I always diversify my holdings, thus the lesson was worth the pain.
Links to my previous blog entries regarding Prosafe and Kvaerner:
Oeistein Helle: HitecVision is picking up public stocks as financial plays
Oeistein Helle: Following HitecVision's lead - part 2
How it feels like to be a Prosafe investor:
Disclosure: I am no longer long Prosafe and Kvaerner.
I wrote this article myself, and it expresses my own opinions. I am not receiving any compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
