re: Oil stocks...are you buying?

Yep, I posted a few months back my target for WTI was a short-term move down to the $28 area then a rebound.

I'm not an expert on crude though. I just chart it for the practice.

MRO all day long at $7.87

It's no exxi, sdrl, etc.

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This is absolutely crazy. XOM is the only oil related company I would feel comfortable buying right now. For a slightly riskier buy, RDS-B is really calling my name.

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settle the frick down.

You have COP and RDSB? just hold it. I'm holding mine and will buy more soon. It may take awhile to get back to past levels for obvious reasons but if you are in it for the long haul you should be fine. I do lots of work for RDS. Even if work gets suspended or pushed back due to oil prices(which might happen), they will bounce back. Shell was one of the first companies back in the GOM after the moratorium.

Possibly some overreaction. Lower oil prices help some companies downstream operations. CVX for one. I've bought CVX, and will continue to, slowly and selectively. From my entry point it hasn't deteriorated much. It very well could. Management has said they will do everything they can to keep paying their dividend. They increased it a while back IIRC. Their current yield, lower than a lot of others, is somewhat a testament to their discipline during the good times. I think it's at about 5%. Honestly don't really pay much attention to CVX, except for strategic buys on occasion as my concern is very low.

I've lost track of rig count, but really for a buy and hold, a lot of oil companies don't warrant all of the worry they seem to be causing. Some frakers are making it right now at present price levels. This entire thing has caused the capex costs to become very, very attractive to companies taking a different approach. Even some smaller, riskier companies have ramped down, make shrewd debt offerings, and are plowing everything they can into exploratory wells given the barian prices for leasing the equipment etc.

The downturn in the market has caused me no concern. I'm not down this year due to VIX insurance, and haven't sold anything. Nothing has gone belly up on me (yet). If it dire, it gets dire. Nothing I can do about it except try to position the best I can, and part of that is that I'm not scared of oil companies right now.

Could very well be true, but not something I use in my decision making process. Fundamentally, unless things get much, much worse, or there is a technological advance rendering oil worthless, CVZ isn't going anywhere. This can't be said about all major oil companies, and especially the ones without downstream operations. Although this is a ways off in any event.

The tougher decision has been at what entry points, how much, and how much further down before I take a really large position. Large relative to dollar amount, and as a percentage of other assets I own. I am unique though. I don't consider my primary residence to really be an asset, and if it was, it's probably last on the list in terms of the above criteria.

Not that anyone cares, but I've been considering a lot of the big picture philosophies in both Rich Dad - Poor Dad, and The Millionaire Next Door. I've also studied the counterpoints to both of these books, and the one has many valid criticisms by legitimate experts. The items that I incorporate, and I'd like to incorporate more, are not being income rich, actually income being a very low consideration, and not buying things, but experiences. Investing in items that produce both income and appreciation. Being able to take well thought out risks due to surplus capital because of this. So I've never bought a new car. Probably never will. Don't have a fancy home, and unless forced to by a spouse, likely never will. On the flip side of this, in my case, it allows me to take a position in a stock like CVX, with virtually no worry.

Hey guys

Novice investor here. Want to invest about 7-10k in oil since I really believe it's going to go up. I'm going to hold for a while

What do you think are the best bets?

I am prob going to dump more into both XOM and RDS, maybe COP. Not sure what I am going to do with FCX. I am down about 50% on it but thinking of maybe adding more. I cant see the going bankrupt even with Moffet.

They have shite spread all over the GOM, did they specify if it was shelf or DW?

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I am prob going to dump more into both XOM and RDS, maybe COP.

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might as well. IDC if it takes 3 years to bounce back. I'll wait it out. You should eventually get your money back and then some if history is any indicator. This is actually a great opportunity to make a killing once share prices rise again.

The fact of a dividend cut doesn't really matter much to me bc my horizon is 30+ years. However, the fact of a possible dividend cut to a stock I am interested in makes me cautious BECAUSE when the cut does happen, it will tank the price and allow for a much more attractive entry price