Reply to "What Stocks do you like right now?"

quote:
Originally posted by g-man:
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Originally posted by bfw:
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Originally posted by g-man:
just like how how oil is going to reach 80$?

reading and blindly believing goldman feels intellectually lazy to me =)


So, do you still think oil can’t reach $80 this year?

Brent is already at $73 or so.

The energy bull is starting to snort Smile

Bfw


we were talking about WTI
not brent.

WTI, last I check is still sitting at 64?

even so, you needed to thank syria to even get at those levels.

personally, I went long BP stock down at 38$ when WTI was sitting at 59.

good long term, good dividends and strongest position out of the big oil co.s

and i'll quote myself back in early feb
quote:
Originally posted by g-man:
I'd say 75$ is the possibility and 80$ is the stretch. but with WTI @ 65$. 80$ only represents a 23% gain. That's a long holding period / risk for so little gain.


i'd say i'm pretty spot on.


WTI at $64?!?

WTI hit a 3 year high today and is currently trading just south of $67.

The best part is that most people think this is all about Syria. That is mainstream news. They don’t really look in to inventory levels and study the lack of a shoulder season in the US this year.

Years of underinvestment in oil exploration have set the stage for a boom cycle in oil price. If inventories were not tight, Syrian news would have zero effect on WTI. We saw this all along in 2015-2017 whenever there were outages in Nigeria etc or issues in the Middle East.

Everyone has said energy is dead for years now and oil (WTI) has rallied from a low of $26 to $67. That’s pretty substantial and indicative of a bull market.

Finally, I (and most) play equities that are very levered to the price of oil so a rise to $75 or $80 will lead to large equity price gains from depressed levels.

Risk reward in the space is excellent.

Stick to the big companies if you must but way more bang for the buck in the smaller E&P.

Bfw
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