iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,431 Blog Posts

OIL COUNTRY

Take notice of the shares of CJES in the after hours trading session. You’d be remiss not to learn something from it, which is: earnings are going to blow the barn doors off this quarter. Expectations cannot be lower in the oil patch. Many of these companies are down 40-70% from recent highs, all because oil dropped a hard 20 dollars per barrel.

The poor oil barrels. What to do with the oil barrels?

The fact of the matter is, a great many of these oil companies are cash cows who will begin to buy up their own shares, in earnest, patiently waiting for the price of crude to rebound. After it does, by the 2nd half of 2015, these stocks are going to blast off, as their share counts are greatly reduced and volume greatly enhanced.

This is a rosy picture, no doubt. But what if I am right?

Get long the names who have the best earnings power, forget about the scraps.

Here are 10 names to bank on, should oil recover.

SN
BTE
FANG
SLCA
CLR
HAL
TRGP
COP
CXO
BCEI

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15 comments

  1. smartestone

    futures sliding. ppl worried about the end of QE

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    • t.c.

      Future selling off on the $AAPL news

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      • tradercaddy

        ** Yawn**
        I doubt if most shareholders care what he does with his penis as opposed to his brain.
        That being said, why he thinks people care is beyond me.
        Just bought a position in ABX,NUGT, JNUG (6.32)- all in pre market.

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        • t.c.

          No I was just trying to bait someone into making a gay joke.

          Those are brave positions my friend.

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          • t.c.

            I’ve got IWM calls and would like to add.

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          • tradercaddy

            Not sure about IWM, but EEM (emerging markets) may be bottoming here.
            JNUG miners tend to follow the EM markets.
            I know gold has been tanking but the gold stocks/gold ratio (among other ratios) is near historic lows. Crossing my fingers helps, also.

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          • t.c.

            You’re a pro. I am not worried. Been reading your comments for a few years. I like your rydex intraday strategy

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        • zuul

          You did what???

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  2. zuul

    No DVN?

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  3. berniecornfeld

    “…should oil recover”. Aye there is the rub.

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  4. matt_bear

    i was rummaging through the Oil trash bin with an eye towards MLP’s and their high paying yields…..but thank you sir Fly. I missed the obvious play in the old men established oil companies with billions of dollars to throw around at whatever they want. I can picture the old fat executive chuckling into this cloth napkin after he finishes his porterhouse steak lunch and authorizes a $10B buyback just for the hell of it.

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  5. dewey dortmunder

    So HCLP = heaped slag in your hypothesis?

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  6. pirate

    I LOVE this clip from TWBB. I imagine The Cap’n as D.D. Lewis here dealing with some hedgies who try to ‘tell him what to do’ with his trades…LOL!!

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  7. the shiek

    See what happens after the first hard wind over the gulf of Mexico

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  8. pyromonoxide

    I want some oil but I’m too much of a short term degenerate.

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