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Time to Think Long Term on Energy

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Thinks might go lower for a while longer, but I think it is time to consider this sector which has had a dramatic drop in prices. XLE for example. Earn a modest dividend while waiting for the increase.

There will be a Moment, when the Prize of Oil will find its Buttom -

some professsional Traders are mentioning somewhat around 10 USD ....

This will be the right Moment to pick the Stock of some valueable Companies

with some very decent Dividends at a very good Prize

ETFs are generally a good Investmentvehicle, but in this special Case, they probably

include Stocks, which will maybe never come back to the former Valueation

Stockpicking maybe the right Choice

and as you probably dont know, when the Bottom in Oil will be generated, we should

start buy well selected Stocks right now - and kep buying them, when they become

even more attractive in their Valuations

so lets find them

this is probably a "Once in a Time" Chance

There will be a Moment, when the Prize of Oil will find its Buttom -

some professsional Traders are mentioning somewhat around 10 USD ....

This will be the right Moment to pick the Stock of some valueable Companies

with some very decent Dividends at a very good Prize

ETFs are generally a good Investmentvehicle, but in this special Case, they probably

include Stocks, which will maybe never come back to the former Valueation

Stockpicking maybe the right Choice

and as you probably dont know, when the Bottom in Oil will be generated, we should

start buy well selected Stocks right now - and kep buying them, when they become

even more attractive in their Valuations

so lets find them

this is probably a "Once in a Time" Chance

What would be your energy stock picks operators (XOM, RDS, TOT) or service companies (SLB, HAL)?

If you look at the 1981 "oil crises", both SLB and HAL bottomed out at 30% of their peak value, but years later. If that holds true again SLB is a buy at 40 and HAL around 25, but in a couple of years.

My advisor sees a bottom of $20-$25 by the end of Q2-2016. That might be a good time to buy some MLPs such as ETP. There will probably be a rebound in the price of oil after the bottom is hit.

My advisor sees a bottom of $20-$25 by the end of Q2-2016. That might be a good time to buy some MLPs such as ETP. There will probably be a rebound in the price of oil after the bottom is hit.

ELP sure look "cheap" at $23, but surely they must be cutting their dividend this year.

http://www.msn.com/en-us/money/savingandinvesting/10-energy-stocks-to-own-for-the-next-decade/ar-AAgmc06?li=BBnb7Kz

The stocks listed were: NOV, EPD, EOG, CLB, PSX, BHI, XOM, OXY, VLO, & RRO.

Any comments from the experts in the audience?

I will prefer not to comment on individual stocks, but I will like to share some relevant and little known fact about how oil price affect big oil companies.

When oil was at $100 operators of course have a nice cash flow, but they do have a problem replenish their reserves. Most operator have +/- 10 years of reserves on their books and need to replace any production to satisfy Wall Street.

The was majority of the worlds oil is controlled by national oil companies and while oil was $100 they had no need and interest in selling marginal or depleted fields to international operators.

Fast forward to today's $28 oil and national oil companies have serious shortfall in their cash flow. Now they NEED to sell assets even at rock bottom prices. The king of them all Aramco is even floating the idea of issuing shares in the company.

I can guarantee you that ExxonMobil and all the major international operators have their own research groups predicting future oil price so they can optimize their assets purchase.

Operator is flushed with cash, marginal fields will soon be sold cheap, so when (if!) oil ever return to $70-100 these companies might come out a lot stronger and bigger.

  • 2 weeks later...

wind power ( demco) in Thailand divs are good too

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