NEW YORK ( TheStreet) -- I was talking to Stephanie Link, the co-portfolio manager for Action Alerts PLUS about two recent sales she made in off-shore drilling name Ensco (ESV - Get Report) and materials giant DuPont (DD - Get Report).
Stephanie and I often agree on stocks and the timing of trade, and we did on DuPont, now in the grip of an activist investor and less of a pure play on chemicals. With the incredibly strong move that DuPont has made since the start of the year and with dividend yield now closing in on a paltry 3%, I couldn't argue with Stephanie on her decision to sell DuPont and book some healthy profits.
But I had a different thought on Ensco, a driller that has been trading poorly while trying to restructure its offshore drilling fleet. Ensco has recently undertaken to build three more ultra-deepwater rigs and lessen its exposure to shallow water drilling. This, over the long haul, is clearly the right move. With the new excitement brewing in the Gulf of Mexico in ultra deep-water opportunities and with Ensco nearing their 52-week low, I am more inclined to buy the company rather than sell it.
Stephanie disagreed, pointing out that Ensco has decided to build these new deepwater rigs on spec, without any contracted work for them in hand. With oil rallying strongly, she maintains the stock should be trading better than it is. Both are very good points.More of my conversation with Stephanie can be viewed in the video above. Action Alerts PLUS has a position in ESV. At the time of publication the author had no position in any of the stocks mentioned. Follow @dan_dicker This article was written by an independent contributor, separate from TheStreet's regular news coverage.