- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: There’s more oil and gas than ever — and the industry is tanking
Posted on 2/10/20 at 1:33 pm to boomtown143
Posted on 2/10/20 at 1:33 pm to boomtown143
quote:
Care to explain?
P.S. You an EDW baw?
not EDW, edw doesn't have baws
And oil isn't going anywhere anytime soon. I am enjoying the depressed prices of oil stocks, as I know the dividends are still coming in, and the share prices will recover
5
Posted on 2/10/20 at 1:55 pm to Thib-a-doe Tiger
Cure for low prices is low prices. There's blood in the streets right now in energy - there's no better time to buy up stock on sale and mineral rights if you've got the dough.
XOM, CLR, and MRO are bargains right now, imo
XOM, CLR, and MRO are bargains right now, imo
Posted on 2/10/20 at 1:58 pm to Thib-a-doe Tiger
Seems like more than just a supply issue this time around. If that were the case, people wouldn't be likening O&G to tobacco. The environment has become to O&G what cancer is to tobacco. Investor sentiment is the problem and there are two causes: 1. The industry has overpromised and under-delivered for too long and has lost all credibility, and 2. There is serious pressure for fund managers to avoid investing in companies that are not environmentally "friendly". Makes it very easy for investors (retail, money managers, capital markets, private equity - everyone) to just write us off like they did to tobacco long ago. And if O&G is only 5% of the S&P500 (the index many of them will be judged against), why would they put their neck on the line investing in O&G when they don't have to.
Agree that O&G isn't going anywhere - just like tobacco hasn't. But a return to a respected market sector seems unlikely.
Agree that O&G isn't going anywhere - just like tobacco hasn't. But a return to a respected market sector seems unlikely.
Posted on 2/10/20 at 2:03 pm to Thib-a-doe Tiger
quote:
And oil isn't going anywhere anytime soon. I am enjoying the depressed prices of oil stocks, as I know the dividends are still coming in, and the share prices will recover
I ask this question as a novice admittedly, but if the stock price continues to go down based on reduced returns, the dividends will soon go away too, no?
Posted on 2/11/20 at 9:17 am to Thib-a-doe Tiger
quote:
I am enjoying the depressed prices of oil stocks, as I know the dividends are still coming in, and the share prices will recover
When Baw? Kind of hard to justify holding oil stocks the last 5 years when the broader market has been absolutely crushing it
This post was edited on 2/11/20 at 9:18 am
Posted on 2/11/20 at 2:20 pm to Thib-a-doe Tiger
quote:Over the last 10 years, Vanguard Energy ETF has an annual return of 1.28% with a SD of 21.14%. That's considerably worse than Vanguard's Total Bond Index (3.65%) despite historically low bond yields. And this is during a market where the S&P500 has had an annual return of 13.81%.
And oil isn't going anywhere anytime soon. I am enjoying the depressed prices of oil stocks, as I know the dividends are still coming in, and the share prices will recover
So whether they're depressed or not, that is a huge opportunity cost to invest in something that has had terrible returns and a lot of risk when risk his historically low and stocks in general are having historically high returns.
So at what point do "depressed prices that will rebound" become "realistic prices that are going to continue to lag the broader market?"
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News