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Varchild2008 (84.02)

Oil and Nat Gas Equities....Now's the time to invest!



January 21, 2009 – Comments (4) | RELATED TICKERS: CHK , EGY , APC

With Oil hovering around $41 rather than plummeting....inspite of all of the bad economic situations global wide....That means the price of oil doesn't matter anymore.

Now is the time to *strike* if you haven't already done so for some shares of Oil and Nat Gas equities.

I may be a bit naieve...But I am not a fan of oil companys that merely manufacture and sell Oil Rigs.  I am not a fan of a purist OIL or a purist Nat Gas stock either.

I'd grab some shares of a healthy mixture of OIL and Nat Gas companys like (CHK) or (EGY) or Anadarko or (LINE) or whatever....scoop em up now.  Share prices have bottomed to a level that supports OIL at $40. 

In an ecomomic recovery the first thing to recover is OIL and NAT GAS and then METALS (although Gold sure has run up quite a bit already).

The catalyst though is that alternative energy won't replace OIL and NAT GAS during anyone's lifetimes.  And with the remote possibility that NAT GAS gets used as a bridge fuel....Then what do you have to lose?

Yesterday's market disaster provides an opening for cheaper prices into these commodity stocks.
(CHK) at $13.XX when last week it was around $15.50 is indeed a bargain...   No company loses $2 in stock price value based on fundamentals in a single week unless you are a BANK or an INSURANCE company or a CREDIT CARD company.

The choice between FINANCIALS / HOUSING / STEEL / OIL & NAT GAS / CONSUMER non-cyclicals / CONSUMER Cyclicals / FOOD & BEVERAGES

Which sector do you think outperforms the others in the next 2 years?

Is a PEPSI more important to you than heating your home and fueling your car?

4 Comments – Post Your Own

#1) On January 21, 2009 at 9:43 AM, binve (< 20) wrote:

Varchild, I am definitely on board with your thinking. I think oil and natural gas are technically oversold too. I think the fundamentals are intact from a very long term investing strategy, and I think the technicals are there to support a short term rally. I did a post about this a couple of weeks ago, you might find it interesting. Feel free to check it out: Short Term Oil

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#2) On January 21, 2009 at 10:20 AM, Varchild2008 (84.02) wrote:

I'm noticing though that the market is showing energy stocks outperforming all other sectors so far this morning.  Obviously because share prices are indeed oversold more so than virtually any other sector from a value standpoint.

I want to get into Oil and Nat Gas soon and may make my move today...certainly this week.

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#3) On January 21, 2009 at 11:53 AM, Entrepreneur58 (37.53) wrote:

The East Coast of the US had a severe cold snap last week and natural gas futures fell.  When you fall on good news, what's going to happen when you get bad news? 

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#4) On January 21, 2009 at 3:50 PM, Bronson12 (< 20) wrote:

Depends on your strategy, but I know some are thinking they can get into the actual production - investing in wells or parts of the wells and processes.

People are also using their IRA for some of this. Getting into self directed IRA to invest in alternatives. is a good resource

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