Oil Downturn becoming an Upturn?

[I make oil]

All indicators point towards it and I honestly think we are on the beginning of the upturn. I see lots of undervalued stocks from good company's that weathered this downturn well. As prices increase over the rest of the year and into next year I think there will be a huge rush to complete wells previously drilled and not completed followed by an increase in drilling late next year. Right now is THE time to invest in company's like Halliburton, Schlumberger and other service providers. I think I'm going to divest all of my other holding and invest in this part of the industry as well as a few undervalued oil company stocks. Any opinions?

[swampman46]

I would probably agree with you if it wasn't for the fact the national gas prices averages are are predicted to be under $2 per gallon by year's end. Yet oil prices "seem" to want to rebound-kind of conflicting news out there.

[marty f]

I need the demand for LNG to start climbing. Seems that mirrors crud, so I hope you are right. As well I hope a new administration will allow for more exportation. As well the building of 2 new LNG Exportation plants in the area is a good sign of expectation of increased exportation.

[I make oil]

I agree that gas has traditionally mirrored crude however I think the addition of LNG to the picture will go a long way towards changing the playing field. Perhaps that is effecting it now? Something I need to look into. It will be interesting to see how gas prices will reflect vs. crude with the changes to the game.

[Gerald]

I have a friend that started buying "OIL" about a month ago..... he may have starting buying a little early.

[Pat Babaz]

All indicators point towards it and I honestly think we are on the beginning of the upturn. I see lots of undervalued stocks from good company's that weathered this downturn well. As prices increase over the rest of the year and into next year I think there will be a huge rush to complete wells previously drilled and not completed followed by an increase in drilling late next year. Right now is THE time to invest in company's like Halliburton, Schlumberger and other service providers. I think I'm going to divest all of my other holding and invest in this part of the industry as well as a few undervalued oil company stocks. Any opinions?

I'm concerned that if the deal with Iran goes through oil prices will be badly hurt. I've heard they have a lot of oil ready to dump onto the world markets. Couple that with the Saudis wide open spigots designed to discourage our fracking efforts out west and I don't know if we've seen the bottom yet. I REALLY REALLY hope I am wrong though and would love for your scenario to be right.

[aquaholic]

CEO of LNG was on Cramers show last night. Worth a listen if you can find it. He's been right on oil moves so far. The Iran deal is the breaker that few are talking about. I'll be buying LNG or LNGLF soon

[I make oil]

http://www.cnbc.com/2015/08/31/cheniere-ceo-to-cramer-bottom-in-oil-is-close.html

What he said mirrors my opinion on the bottom of this down turn. People don't understand how difficult it is to raise capital to increase CAPEX. CAPEX is what funds and drives drilling. Drilling is what is necessary to maintain and increase production. (Normally, sometimes there are other things in play but not often and they don't make much of a difference on the big picture.)

On Iran. I don't think they are that big of a threat. They have some oil in storage but not that much. Anyone who know anything about the industry know they are more of a distraction than anything. They are using the media as a form of financial global terrorism. They make all this noise about what they are going to do to drive down the price to hurt the producers/countries they hate. If all restrictions where taken off today and they released there oil over night with the current market the oil would be absorbed quickly. If and when the sanctions are removed the environment will very different and I believe the smack they are talking will fall flat. No one is rushing to Iran to invest Billions of dollars in that house of cards I assure you. The risk is to great due to their past history.

I could go on and on about why I believe the bottom is near but I don't feel like typing that much. Do your own research and make your own decision. I'd hate for anyone to loose money baised on my advice. I'm just giving my opinion to my friends here on SaltyCajun and enjoy talking the market. Good luck to everyone.

["W"]

I know one thing, since I moved from offshore to over our land division we never hear about oil prices. Did not even know it was $38

Different world here on land ' don't matter is oil is $200 or $3 they still have to move it

["W"]

BTW buy all the apple stock u can because its going to rocket launch

[I make oil]

Another positive occurrence happened in the oil patch. While oil did not go up Wednesday, the largest oil service firm Schlumbergerbought Cameron for $14.8 billion in cash and stock. This was a big deal for Cramer, because Schlumberger paid a huge 56 percent premium for Cameron. It wouldn't have made a move like that if it believed that drilling was going away.
Schlumberger committing this amount of capital was a signal to Cramer that we could be closer to a bottom than most people think, and it couldn't afford to wait to snap up Cameron. This bullish move put a bid under energy stocks, even as oil went down again.


This is HUGE people. Read this and think about it. Why would the worlds largest company pay such a large premium for a company?

[Juciy]

All indicators point towards it and I honestly think we are on the beginning of the upturn. I see lots of undervalued stocks from good company's that weathered this downturn well. As prices increase over the rest of the year and into next year I think there will be a huge rush to complete wells previously drilled and not completed followed by an increase in drilling late next year. Right now is THE time to invest in company's like Halliburton, Schlumberger and other service providers. I think I'm going to divest all of my other holding and invest in this part of the industry as well as a few undervalued oil company stocks. Any opinions?


Look into buying CVX. The current price is really cheap considering some of the big big things they have on the horizon. And they are returning 5-6%.


Sent from my iPhone using Tapatalk

[I make oil]

Already own them. I've had them since '99. Bought EOG this week and back to RIG at $13.80.

[Nickt87]

BTW buy all the apple stock u can because its going to rocket launch

Why is that?

[ahlangle]

I think crude prices are near the bottom, but not at the bottom yet. Many companies wanting to take advantage of the price environment will wait until they believe prices have reached a floor to make acquisitions. This will be an indicator of the beginning of the up-swing.
Another factor is the geopolitical environment: as the US talks exporting laws that extend past Canada and Mexico, the decision, which will likely be made before the presidential election, will have a huge impact on prices, as does everything in the news.
I'd look for prices to change a lot in 2016, and begin steadily rising late 2016.

[swampman46]

BTW buy all the apple stock u can because its going to rocket launch

Means nothing without the scource.

["W"]

Why is that?

Apple is cheap at $100 is one of the most traded stocks in the world .

Everyone had a phone and when iPhone7'8'9'10etc keep coming along with iwatches and what not ..

100 is cheap ' 80 is a if you don't buy you lost


This stock will be over 300 before next year this time if not higher

[redaddiction]

Apple is cheap at $100 is one of the most traded stocks in the world .

Everyone had a phone and when iPhone7'8'9'10etc keep coming along with iwatches and what not ..

100 is cheap ' 80 is a if you don't buy you lost


This stock will be over 300 before next year this time if not higher


300 by next year? You're saying that their market cap will be 1.8 trillion next year? No way that will happen. They would need HUGE earnings quarter after quarter for a long time. I just don't see it.

Anyways, you can't make a lot of money on $100 stocks since you can't really buy that many shares unless you got a huge bankroll to play with. I'd rather buy low priced stocks with big growth potential.

["W"]

300 by next year? You're saying that their market cap will be 1.8 trillion next year? No way that will happen. They would need HUGE earnings quarter after quarter for a long time. I just don't see it.

Anyways, you can't make a lot of money on $100 stocks since you can't really buy that many shares unless you got a huge bankroll to play with. I'd rather buy low priced stocks with big growth potential.

I had 5o shares then it split 7-1 giving me 350 share s now I own 400

I'll bump this post next year

[Gerald]

Anyways, you can't make a lot of money on $100 stocks since you can't really buy that many shares unless you got a huge bankroll to play with. I'd rather buy low priced stocks with big growth potential.

The number of share you buy of a stock does not change how much you can make/loose.

What is important is the % change of the total money that you invest.

It does not matter if you buy 1000 shares at $ 50 Or......buy 5000 shares at $10. This would be a $ 50,000 investment.

[redaddiction]

The number of share you buy of a stock does not change how much you can make/loose.

What is important is the % change of the total money that you invest.

It does not matter if you buy 1000 shares at $ 50 Or......buy 5000 shares at $10. This would be a $ 50,000 investment.



Yes the money is the same. But buying a larger quantity of shares in a stock that has room to grow will make you more money.

Stocks that are at all time highs won't give you a 300% gain anytime soon. But a smaller cap stock at $10 that is good fundamentally, can grow exponentially higher and make you a ton of money.

Or, look at what Cheniere Energy did the past 5 years. Would you buy it now hoping to make a ton of money? No, you wouldn't. But if you bought 10,000 shares when it was at $5, then you would have hit a home run!!.

Don't get me wrong, I'm not saying Apple is a bad buy. It's more of a stock I would use to put "already made" money, like from Cheniere, so as to protect it for the long haul into retirement.

["W"]

Apple was a $700 stock and its at its low not close to high

[redaddiction]

Apple was a $700 stock and its at its low not close to high


Not quite. Apple's market cap is still the same after the split. The $100 price today is the same as the $700 price before the split valuation wise. There are more outstanding shares now than before the split.

It's not nearly the same, the stock being $100 before there was a split, and being $100 now.

["W"]

Not quite. Apple's market cap is still the same after the split. The $100 price today is the same as the $700 price before the split valuation wise. There are more outstanding shares now than before the split.

It's not nearly the same, the stock being $100 before there was a split, and being $100 now.

Just remember I told u so



I'll see u at $200 soon

[Nickt87]

Apple is cheap at $100 is one of the most traded stocks in the world .

Everyone had a phone and when iPhone7'8'9'10etc keep coming along with iwatches and what not ..

100 is cheap ' 80 is a if you don't buy you lost


This stock will be over 300 before next year this time if not higher


Yea I just did some research and happened to watch Fast Money last night and they said AAPL was selling at a serious discount right now. They labeled it as a top 5 stock for long term large growth.

[swampman46]

The number of share you buy of a stock does not change how much you can make/loose.

It does not matter if you buy 1000 shares at $ 50 Or......buy 5000 shares at $10. This would be a $ 50,000 investment.

I would definately take the 5000 shares. Don't forget about dividends! That's how you make more money on the same investment total. ;)

[swampman46]

Yea I just did some research and happened to watch Fast Money last night and they said AAPL was selling at a serious discount right now. They labeled it as a top 5 stock for long term large growth.

Agreed. Most analysts believe AAPL should be closer to 200 right now.

[Crankbait36]

WTI is saying oil will go below 30$ a barrel later this year as we are running out of oil storage in America!

["W"]

I called it the 1st time !! Just passing on info from a good source that Apple is going to move up soon over $200 a share

Simple math . You put 10k it can be 20k soon

[I make oil]

http://oilpro.com/post/18152/time-up-oil?utm_source=DailyNewsletter&utm_medium=email&utm_campaign=newsletter&utm_term=2015-09-04&utm_content=Article_2_txt

This is brilliantly written. If you have any interest at all in this you should read it.

[jopete]

all i know is that i need to be on a job instead of reading about all u 'trumps' and your stock options. lol

[MathGeek]

Can the company be profitable with gas under $2.00 a gallon?

[I make oil]

Yes, no, maybe. How long is a piece of string?

A question like this has to many variables to answer quickly. Depending on a companies debt ratio and business philosophy some can. I personally like smaller well run independent companies. When a company runs intelligently and lean utilizing the best current technology, keeps debt down all the time then yes. They can be profitable through down cycles. The challenge is to remain that way through up cycles. It's very easy for a company to incur to much debt during an up cycle attempting to increase growth to take advantage of high prices. The trick as an investor in this industry is to know who makes good choices and invest in them. Not chase after the flash in the pans. It's possible to get caught up in the exciting big growth over leveraged players. It's all good until the bottom falls out. I've lost a time or two and learned the hard way.

["W"]

Can the company be profitable with gas under $2.00 a gallon?

Yes , when I started in the oil industry in 2000 oil was around 25-28bl and gas under $2

And oil companies never batted a eye at cost and it was actually a great time to be in the oil industry. When oil started its climb to record prices you saw companies expand and drilling took off to new levels and it was all great times .

Oil companies have been taking advantage of cheap labor and high profits for years but once then oil prices were stable cost of labor double for most . The oil companies were pushing out high bonus and ridicules salaries . I seen more money pissed off on some of the most unless things possible.

Oil companies are just like most Americans they live to there means and when oil was $100 bbl they spent like it.
Now they want to lay off the work force that made them !

Just like rice farming . You hold for higher price and get stuck with lower price but you survive and still buy 300k combines !

We seen it before (2008) and we will see it again , it's a market sold on futures !