Big Oil is Big and Stupid

I am noticing a theme, in recent weeks. Big oil is not spending money, despite $80 oil. I know, many of you millionaires out there will chastise me, saying “that’s because the economy sucks.” Wrong stupid.

Historically, big oil is known to commit blunder after blunder, until they find themselves in receivership.

Fluor Corporation (NEW) [[FLR]] announced bad numbers last night, blaming it on weakness in oil and gas. A few weeks ago, National-Oilwell Varco, Inc. [[NOV]] said business sucked, for lack of a better word. If you have some time, go through the earnings reports of some oil/gas parts makers; they are terrible. It’s almost as if these morons were operating in a $10 crude environment. In all fairness, I suppose they were simply flabbergasted by last year’s $140 to $30 oil slope to hell. Now, these paranoid 10 gallon hat wearing hillbillies are hoarding cash.

Also, small cap tech is really coming up short this earnings season. From [[RAX]] to TriQuint Semiconductor [[TQNT]] to TeleCommunication Systems, Inc. [[TSYS]] —buyer beware.

The one leg of my thesis that I feel most confident with, at the present, is foreign stocks. They have been kicking Uncle Sam in the nuts for some time now. God willing, they will continue to do so, AND MORE.

On a pullback, I like POSCO (ADR) [[PKX]] , Ctrip.com International, Ltd. (ADR) [[CTRP]] and Aixtron AG (ADR) [[AIXG]] . I’ve been waiting to buy the LED parts maker, Aixtron AG (ADR) [[AIXG]] , for awhile now; but it just won’t go down.

Bottom line: be careful with small cap oil into earnings, for big cap oil is really stupid and cheap. And, as always, pray for the market to dip again, so we can get some pristine entry points. As you know, I am 40%+ cash, at the moment.