Why I sold Aurora (but still like Fronteer)

by JDH on May 5, 2007

My 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 116%, the largest existing gain in my portfolio. The stock has had a slight pullback, but the chart still looks great.

Fronteer Development Chart

The recent pullback did not bring Fronteer back to the uptrend line, so I continue to like this one. The RSI and MACD are also at favorable levels, so I see no reason to start selling.

One of Fronteer’s holdings is AXU.TO – Aurora Energy Resources, Inc.. In fact, Aurora is a spin-off from Fronteer, and Fronteer continues to own 50% of the outstanding shares. This week Aurora broke out and made a new high:

Aurora Energy Resources

I sold my Aurora back in April when it didn’t break out; that would appear to have been a mistake. However, Aurora’s RSI is now at 72.10, which is high, so I don’t regret my decision. I like Fronteer, and as Aurora increases so does Fronteer, so for the sake of simplicity I will continue to own Fronteer, and take a pass on Aurora.

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