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redaddiction · #1 11-28-2014, 03:26 PM

Energy Stocks are getting slaughtered today after the sharp drop in oil yesterday and today. I know they will rebound eventually so now is a good time to acquire some cheap shares.

I'm watching some of the smaller independent companies. REXX, GDP, MPO, CRK, PVA. Any others you guys like?

"W" · #2 11-28-2014, 05:36 PM

HYH

Moved some money into them few weeks back and been doing well

redaddiction · #3 11-30-2014, 08:31 PM

I hope these oil prices don't get too bad. I'd hate to see layoffs start to happen. Some say this could be the 1980's all over again. I wonder how long the Saudi's will hold out? Stock prices will drop big tomorrow again i'm sure.

"W" · #4 11-30-2014, 09:54 PM

Quote:

Originally Posted by redaddiction

I hope these oil prices don't get too bad. I'd hate to see layoffs start to happen. Some say this could be the 1980's all over again. I wonder how long the Saudi's will hold out? Stock prices will drop big tomorrow again i'm sure.

When I started in the gulf in 2000 the oil prices were 28-32 dollars a bbl

Don't see this lasting or really hurting the oil companies that have been racking back billions since oil boom in. 2003 to now

redaddiction · #5 11-30-2014, 10:02 PM

Quote:

Originally Posted by "W"

When I started in the gulf in 2000 the oil prices were 28-32 dollars a bbl

Don't see this lasting or really hurting the oil companies that have been racking back billions since oil boom in. 2003 to now

I agree somewhat. But the problem is that since there was a boom the last few years, a bunch of companies went into massive debt borrowing money to drill more wells and rapidly expand. Not it's going to bite them in the azz if they can't make their debt obligations. Smaller companies may get bought out cheap by a bigger company or they may just go bankrupt possibly. The next couple months will be scary for some.

BloodKnot · #6 12-01-2014, 09:39 AM

Energy stocks are so hard to value and figure out because all are dependant on something they cannot control...the price of oil. So my only advice, when the price drops big...that is when you go after the companies with a better product or distict advantage that is valued at a discount. Or look for ones that are better diversified with all the items they sell.

Armand16 · #7 12-01-2014, 10:04 AM

Quote:

Originally Posted by redaddiction

I agree somewhat. But the problem is that since there was a boom the last few years, a bunch of companies went into massive debt borrowing money to drill more wells and rapidly expand. Not it's going to bite them in the azz if they can't make their debt obligations. Smaller companies may get bought out cheap by a bigger company or they may just go bankrupt possibly. The next couple months will be scary for some.

Have you been purchasing any put options?

redaddiction · #8 12-01-2014, 12:50 PM

Quote:

Originally Posted by Armand16

Have you been purchasing any put options?

No, that's all above my head. Just buying stocks only. I think prices are already pretty discounted and bottomed out mostly. But I say that with a slight uneasiness.

Mako19 · #9 12-01-2014, 01:15 PM

Quote:

Originally Posted by "W"

When I started in the gulf in 2000 the oil prices were 28-32 dollars a bbl

Don't see this lasting or really hurting the oil companies that have been racking back billions since oil boom in. 2003 to now

They were drilling for and producing oil at a MUCH lower cost/bbl 14 years ago W.
Some drilling companies are already cold stacking rigs and laying off crews.

No doubt the shale plays where they are fracking on land where it is easy to just stack thr rigd and go count their money will be affected before the GOM. These Major Operators plan these wells years in advance and have so much invested in deepwater projects they cant just cancel the project.

However, if these prices get down to what you mentioned for any length of time and you don't think it will hurt "oil companies" and cause layoffs you need to get your money back from UH for those online accounting courses.

southLA · #10 12-02-2014, 10:19 PM

What are y'all's thoughts on the NG side? UGAZ is way down

redaddiction · #11 12-02-2014, 10:25 PM

Quote:

Originally Posted by southLA

What are y'all's thoughts on the NG side? UGAZ is way down

I have no clue at this point. I'm only hoping I can load up on stocks before it all starts to rebound. My money is tied up at the moment. Ughhhh

I make oil · #12 12-14-2014, 02:55 AM

The Saudi's say they are trying to protect their market share. I honestly don't understand how this is in their best intrest. They are heavily invested across the market and are deeply involved in international banking as well. With a huge drop off in the price of oil like this it causes ripples across the market and does no one any good. I hope they cut back soon or I fear the damage will not be able to correct itself. Once that happens highly leverged oil companies will fail, Junk bonds will fail, banks already weak from the damage in 2008 will fail and a international collapase won't be far behind. I have to believe the Saudi's understand this and are just flexing their muscles. If we had a strong knowledgeable President he would have thrown up Tariffs right away to protect our domestic market and allowed us to commence export of our oil. This *** clown might actually be part of the root of this BS price drop. I've heard he requested OPEC increase production to help drive down gas prices to help his Democratic cronies mid term elections runs.

jamesf · #13 12-14-2014, 07:11 AM

I don't agree with what they're doing either but the Saudi' s will try to keep it low for as long as it takes to dry up the American Fracking oil business. They can keep running at $ 40 a barrel and still make money. Obviously not like when it's at $ 100 a barrel. But it's all about CONTROL