Investing

is now the time to invest in oil stocks?

  • Last Updated:
  • Jun 21st, 2019 8:51 pm
Tags:
Deal Addict
Jan 3, 2013
1944 posts
212 upvotes
Sidney
jdu0ng wrote:
Dec 2nd, 2014 12:38 am
Bought more SGY, just ride it off with the monthly dividend
Ballsy. I dollar averaged at $5.20....I don't think I can pump any more into this one though. :(
Deal Addict
Feb 9, 2013
1718 posts
526 upvotes
Mississauga
SheaButters wrote:
Dec 2nd, 2014 9:24 am
SGY is next in line to cut their dividend
You're backing this statement by...?
Deal Addict
Nov 29, 2005
1290 posts
184 upvotes
Winnipeg
OPEC knows they'll need to keep prices low over several years to sink the other global players. For it to only last a few months there will be little to no impact and their recent efforts will be for nothing. Once things normalize with low prices and dividends are no longer cut or y/y profile drops aren't as substantial then i'll be looking to jump in.
Deal Addict
Sep 6, 2010
1686 posts
430 upvotes
Vancouver
LOL @ waiting until tomorrow...looks like it cost you a few percent.
Member
Aug 13, 2013
218 posts
21 upvotes
Bunkhouse wrote:
Dec 2nd, 2014 12:08 pm
OPEC knows they'll need to keep prices low over several years to sink the other global players. For it to only last a few months there will be little to no impact and their recent efforts will be for nothing. Once things normalize with low prices and dividends are no longer cut or y/y profile drops aren't as substantial then i'll be looking to jump in.
I agree in part, consensus seems to be that the current price drop is based on the supply side, i.e. US oil production ramping up, oilsands coming on line, OPEC continuing production levels etc. The question to answer before diving in is, what happens when/if the demand side tanks also? economic indicators are in the tank right now, in the event that January earnings season does not bring good news, then what? Do you think more QE will save the day? hasn't so far.
Deal Addict
User avatar
Sep 20, 2005
1887 posts
311 upvotes
Bunkhouse wrote:
Dec 2nd, 2014 12:08 pm
OPEC knows they'll need to keep prices low over several years to sink the other global players. For it to only last a few months there will be little to no impact and their recent efforts will be for nothing. Once things normalize with low prices and dividends are no longer cut or y/y profile drops aren't as substantial then i'll be looking to jump in.
Of the countries in OPEC, only Saudi can tolerate these prices. Some can do at $80, while others need $100/oil. The group arent in consensus, and as oil maintains these level or lower, more political pressure amongst the other OPEC nations to pressure saudi to do something. I believe they didnt do anything this time around was 1) they weren't ready to orchestrate a production cut, and 2) they wanted to see if market could stabilize itself and play a wait and see game.

Next meeting is in June 2015, a lot of time for them to plan and see what happens during what is ramping up to be peak season for oil. I am fully expecting them to make a move in the next meeting if oil remains low.

A few month is too much time for junior oil companies struggling to meet cashflow and covenant.
Life is short make it long
Deal Addict
User avatar
Sep 20, 2005
1887 posts
311 upvotes
gwplant wrote:
Dec 2nd, 2014 12:48 pm
LOL @ waiting until tomorrow...looks like it cost you a few percent.
nah, oil down today. Small bounce back from being oversold yesterday. More opportunities to come.
Life is short make it long
Deal Addict
User avatar
Nov 2, 2008
1274 posts
154 upvotes
theredstar wrote:
Dec 1st, 2014 12:54 pm
I am thinking of investing in oil stocks. But with oil's big drop, i am afraid that big names like suncor, canadian natural resources, canadian oil sands might go bankrupt and my investment worthless....
Never. Wanna know why?

Because companies like Suncor, Imperial all have a large retail side to their business. Oil plummets, sure, they'll drop, but the retail side [the pumps, aka consumer] will more than hold them over. Suncor was up 0.33% today... Imperial was up something like 1$ and change.

I was reading the other day that car sales are up 3% ish, people trading in econoboxes for large suv's and less fuel-friendly cars because gas has been cheaper the last little while.

Now, if you're looking at some penny stocks, well, those are 'risks' indefinitely since 100% of their business is in their direct operations and not spread over other aspects of oil...
Deal Addict
User avatar
Feb 6, 2012
4779 posts
345 upvotes
Gloucester, Canada
ilusa wrote:
Dec 1st, 2014 1:19 pm
I jumped in, last week thinking just this..

Looked like it was 1 week to early..
Same :o
Koodo & Public Mobile customer
Deal Addict
Sep 6, 2010
1686 posts
430 upvotes
Vancouver
darkmagician wrote:
Dec 2nd, 2014 3:28 pm
nah, oil down today. Small bounce back from being oversold yesterday. More opportunities to come.
LOL ok if you say so keep on predicting...
Deal Addict
User avatar
Jan 4, 2009
3665 posts
1311 upvotes
on the links
gwplant wrote:
Dec 3rd, 2014 10:04 am
LOL ok if you say so keep on predicting...
Why should he be any different than the other 80% of posts here. Predictions are free.

But if you actually blindly follow someone's advice here, well...
Member
Nov 8, 2009
362 posts
64 upvotes
jdu0ng wrote:
Dec 2nd, 2014 11:47 am
You're backing this statement by...?
I haven't calculated their numbers but a bunch of financial experts are predicting a cut if oil stays in this range for a long period of time.
http://www.stockchase.com/company/find (Type in Surge Energy)

Doubt it'll be the next to cut but once you see others start cutting, I'm sure others will soon follow.
Deal Addict
User avatar
May 25, 2008
1378 posts
567 upvotes
Mississauga
endokuken wrote:
Dec 4th, 2014 9:38 am
Wil cos ever stop dropping?
Down almost 17%

Top