Fronteer Development Group Inc. – My Biggest Holding, and I’m Holding

by JDH on April 7, 2007

At the moment, the single largest holding in my portfolio, at 10% of my portfolio, is FRG.TO – Fronteer Development Group Inc. I am sitting on a profit of 122%, the largest existing gain in my portfolio. Since it’s inclusion in the TSX S&P Index on March 19, it has risen from around $14.20 to it’s close this week at $16.03. It’s been a great run, and we are in new high territory, but is it time to take profits?

Fronteer Development Group

I think the time to take profits in advance of a consolidation is rapidly approaching, but I am not willing to sell a stock that has just made a new high. The RSI is approaching the 70 level, but has Fronteer has shown in the past, it can stay above the 70 level for a month before beginning to fall. I think a target of around $18 will be a good level to start taking some profits, although this is a great company, so I don’t plan to sell everything. The MACD is not in oversold territory, so I think we still have some time yet. I would like to see Fronteer closer to 8% of my portfolio, but for now, I’m letting it run.

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