iBankCoin
I've been doing this a long time.
Joined Oct 7, 2015
92 Blog Posts

T. Boone vs The Maven – Round One

I fracked over 3,000 wells in my life and never had a problem with an aquifer.

-T. Boone Pickens

Pickens with Clarence Thomas of The Supremes.

I’m a Republican. I don’t want to go to heaven and have to face my family up there and tell them I voted for a Democrat.

-T. Boone Pickens

Old T. Boone Pickens is making moves like there is no tomorrow. You may remember CNBC favorite T. Boone as one of the Texas Oil Investing Legends, before he bet the farm on Whiting and Chesapeake and got slapped like a donkey when the market collapsed.

Pickens with Cramer in The Bakken.

But he is back and he is making waves, with a focus on midstream and logistics. He knows that despite the boom in the Permian and elsewhere, we simply do not have capacity to move it all as CAPEX has collapsed after the oil bust.

I have always believed that it’s important to show a new look periodically. Predictability can lead to failure.

– T. Boone Pickens

I used some data from GuruFocus to hone in on the long positions he had either initiated or added to in Q1 and created a Basket of stocks inside Exodus to keep track of performance and get a clear feel for his M.O. I call it Pickens Pickin’s:

As anyone who has read this blog knows, I have also (in a modest way vs my Esteemed Opponent) been very active recently accumulating what I consider value plays in the space, which I cleverly named My Oil Basket:

Obviously mine is much higher risk, as seen by the levels of short positions in each basket. Boone has clear focus, as you can see by the Dividend Yields of his picks.

I’m focused on energy only. And I know what I’m talking about. And I don’t want to be distracted on other things.

-T. Boone Pickens

I cheated by snagging a few of his picks this week, which I chose by their distance from 52-week highs and other factors that I considered extreme. Think baby out with the bathwater. Think Smart Sand, Inc.

I may jettison WLL and take a loss, they have not shown that they can make it sub-$50. My numbers get skewed by SRUNU, which is not an actual oil company yet.

He may win through dividends alone, and he beat me today, but Week One belongs to The Maven.

If somebody I don’t like gets in the crosshairs, I pull the trigger. But I don’t hunt for them.

-T. Boone Pickens

Baker-Hughes rig counts bullish for the third week in a row. Massive draws seen again from API and EIA, imports from Saudis are down. I like my chances.

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4 comments

  1. moosh

    Thanks for the post. Smart sand did stick out in his port. What do you think about propetro?

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    • The Maven

      I just sold Smart Sand for a loss. About a day after I bought it an article came out stating that locally-sourced proppant suppliers in Texas are starting to crush competition from out-of-state suppliers like Smart Sand. Very bad timing on my part but unlike Pickens I bought low and sold a bit lower lower rather than buying high and selling much lower.

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    • The Maven

      Moosh, ProPetro is in my Oil Basket.

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  2. sarcrilege

    This right here: ” T. Boone bet the farm on Whiting and Chesapeake and got slapped like a donkey when the market collapsed” tells me that global events (politics, banksterism, gov’t meddling in markets, ..) trump local consideration and fundamentals.

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