There are some huge movers in the oil patch again today. I don’t want to get caught up in the hype–because capex budgets are coming down and people will look at these names A LOT differently after they report earnings. My favorite way to play a possible relation in the industry is SLCA. The frac sand companies are call options on shale. If oil gets to $65 again, SLCA will double from current prices.
My other oil investments include DVN (best in class, super hedged), WRES (my lotto play), FMSA (call option on shale) and ECR (small trade off bottom). It’s very tempting to go hog-wild here, buying up PDCE, EOX, SYRG, MTDR, WLL, BAS and others. As a matter of fact, those might be the single best places to put money over the next 6 months. However, after seeing the violent pullback in crude, one must comport oneself and fend off the temptation for wanton gambling.
My best hedge against crude is FRO, which is benefitting from producers desire to store refined and non-refined product in oil tankers.
The market looks good, even though my YY trade is down a quick $2. Fucking chinese burritos.
For now, FEYE, SLCA and GILD are helping put me ahead by 0.8% today.
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would you get long crude here for a bounce to $65?
I haven’t sold. So with that logic, yes, I’d buy here in case we go up.
FEYE is run by a bunch of cock gobblers
Wait until they fuck up earnings again
i paid $3.43 a gallon for premium last night. Oil is down almost 50%, but the price for premium is only down about 15%. All the savings is apparently in 87 octane unleaded. I don’t drive a Toyota corolla though.
lol
Dr. Fly, any input as to why TRN hasn’t participated in the rally? EPS is impressive, and they’ve crushed their past earnings and revenue estimate. P/E is below 7… Only thought would be debt/equity levels too high.
I took it off my radar when I sold it. I don’t want to even think about it.
Thanks for the response good sir. I jumped in MTDR a couple days ago due to their low debt levels, and primary operations in Eagle Ford. According to all the studies, Eagle Ford is cheapest spot in U.S. for shale oil extraction.
Don’t let a good crisis go to waste. Rip the throats out of the professionals to cap of a year of under-performing money managers.
Long $BABA, $FUEL, $NADL, $BAS, $KEG, $CIE, $HK, $PDCE, $SGY, $STO, $WLL
Hat tip to the doctor and his entourage of bloggers for their coverage, insights, and analysis over the past 2 weeks. I wonder what this site was like during 2007 – 2009.
Ok, I’ll get in this SLCA.
Long uco, catching the falling sword. May need to call in a prosthetist.
NY’s recent banning of fracking gives me pause to get back into the sands companies.
I wouldn’t worry about many other states’ officials having as much common sense or information about fracking as the ones in New York. They don’t.
Here’s an article demonstrating this.
http://www.npr.org/2014/12/18/371642364/no-fracking-in-new-york-thats-ok-with-pennsylvania
Up 700 dow points in the two days BEFORE expiration, and on Triple Witching expiration day the market FLATLINES.
If you don’t think the market is a RIGGED GAME, think again.
For those who like to gamble in the oil patch… uggh I mean invest.. check out OEDV…
I’m now down 3.5% in YY. Super-sizing my losses, just in time for Christmas!
Now is the time to start pyramiding gains in energy stocks. My entire IRA is in ZAZA, up a cool 40-50%. I’m about to sell 2/3 and roll it into MHR.
As long as Crude holds the low I like SCLA as a laggard behind EMES move the past couple days. Seems like it has a lot of upside left in the tank here. Jumped into HAL calls today also looking for a bounce in a nice low beta name.
FLY do you ever but options in any names. Seems like these oil plays would offer more upside with defined risk especially with the Risk vs Reward here.
Just curious
Yes I do
Hclp lagging the rest of the sand plays and perhaps the best of breed. Next to go.
Feb WTI contract over $58, hopefully we rip higher again on Monday. SN up almost 70% from its lows, that’s what I’m talking about.