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EPS100Momentum (72.46)

Oil nearing 52 wk lows - Can we be so lucky?

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November 03, 2013 – Comments (1) | RELATED TICKERS: BCEI , OAS , WLL

Yes we can, oil going to 52wk Lows is very possible, based on the 3yr chart, oil looks to hit $90. The problem is that in the last 3 years anytime it has breached $90 it has come back up just as fast as it went down. History does not lie and there is a certainty that the same scenerio will play out this time as well.

I am sure there are plenty of Money Managers that are counting on this same exact scenerio to play out this time too.

So what is the game plan?

Look for oil to bottom out soon in November and start a dramatic rebound if we get a cold spell in the weather in the Northeast of America. This region of America is very dependent on oil as its heating source and a cold spell in this region will put a floor on the falling oil prices and reverse the downward trend.

An alternative to playing oil directly is to look at Oil related companies who have seen many of their stock prices fall rapidly from their highs due to falling oil prices:

TPLM high $11.66 now only $10.16 

TPLM Earnings Growth Rate = FY 2014 +362.60%, FY 2015 +26.90%

KOG high $14.11 now only $12.38

KOG Earnings Growth Rate = FY 2014 +30.40%, FY 2015 +50%

BCEI high $57.47 now only $49.67

BCEI Earnings Growth Rate = FY 2014 +93.20%, FY 2015 N/A

OAS high $57.33 now only $51.68

OAS Earnings Growth Rate = FY 2014 +28.%, FY 2015 +30%

WLL high $70.57 now only $66.13

WLL Earnings Growth Rate = FY 2014 +5.30%, FY 2015 +11.8%

 

(Note: All Earnings Growth Rates data from MSN/Finance)

 

   

1 Comments – Post Your Own

#1) On November 05, 2013 at 6:32 PM, awallejr (81.61) wrote:

From a seasonal point of view this is normal to drop here.  It will start inching up in December again.

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