Investing

is now the time to invest in oil stocks?

  • Last Updated:
  • Jan 22nd, 2021 11:23 am
Tags:
Member
Feb 7, 2014
421 posts
19 upvotes
airmail wrote: Are there any etfs strong in oil?
Here is an ETF that comprises of Canadian energy sector issuers ... XEG.TO currently sitting at 13.25 (its high this year was in June at 21.37) . Is this a worthwhile ETF to invest in?
Sr. Member
Oct 16, 2008
930 posts
130 upvotes
Toronto
Flowerp wrote: Here is an ETF that comprises of Canadian energy sector issuers ... XEG.TO currently sitting at 13.25 (its high this year was in June at 21.37) . Is this a worthwhile ETF to invest in?
I got in XEG couple weeks ago at $14. Planning to cost average down again.
Deal Fanatic
User avatar
Oct 9, 2008
5681 posts
2233 upvotes
Thornhill
For those that are investors looking to start positions in oil, now is the time to hoard cash and be PATIENT.
Deal Fanatic
Mar 24, 2008
6009 posts
2279 upvotes
Toronto
Thread: is now the time to invest in oil stocks?
If I were to speculate, now would be the time to invest in oil stocks because things look bleak. Another reason why now is the right time is that Jeenyus1 wants you to hoard cash and wait. Both equally good reasons IMO :lol:
Jeenyus1 wrote: For those that are investors looking to start positions in oil, now is the time to hoard cash and be PATIENT.
Deal Addict
User avatar
Aug 4, 2014
3147 posts
3199 upvotes
Toronto, ON
Reading this morning in BNN Newsletter: "Another day, another capital expenditure cut, this time from Crescent Point which is reducing 2015’s spending by 28% and expecting a 9% gain in 2015 production. Dividend unchanged.", checking Globe Investor website: "Crescent Point Energy Corp is up sharply today, rallying $0.41 or 1.65% to $25.27." - well, I bought 70 more shares for $25.25 yesterday, before it dropped further, as usually... lol but glad to own it regardless, and those who are PATIENT can wait all they want while I collect my 23 cents per share monthly dividends (and if they cut the dividend and shares drop again - will buy some more :D )
Deal Fanatic
User avatar
Oct 9, 2008
5681 posts
2233 upvotes
Thornhill
ksgill wrote: If I were to speculate, now would be the time to invest in oil stocks because things look bleak. Another reason why now is the right time is that Jeenyus1 wants you to hoard cash and wait. Both equally good reasons IMO :lol:
I think now is a decent time to start positions, long term you'll be fine and you can collect dividends in the meantime.

I'm personally waiting for upcoming earnings season before taking a dip if at all by then, I do not see overall upside on next earnings for the large majority. Also looking for further Russia/Iran sanctions.

Also, January 28, 2015 will be an important date - release of US Change in Crude Oil Inventories.
Deal Addict
User avatar
May 11, 2014
4275 posts
4876 upvotes
Iqaluit, NU
I agree with Jeenyus, it's better to let mr. market weed out the truly strong players first. If anything things could get cheaper. I'm gonna really look at energy company bonds right now.
Deal Addict
Nov 11, 2004
3171 posts
333 upvotes
Ottawa
Buy Low... Sell High

Yet when prices are low people do the exact opposite ;)
Hello
Deal Fanatic
Mar 24, 2008
6009 posts
2279 upvotes
Toronto
ilusa wrote: Buy Low... Sell High

Yet when prices are low people do the exact opposite ;)
Exactly. But but... they are waiting for the prices to hit the bottom and for weak players to get weeded out! Don't you understand anything?
Deal Addict
Sep 6, 2010
1935 posts
699 upvotes
Vancouver
Timing market...yada yada yada same old mistakes constantly get made when emotions and ones money is involved.
Deal Addict
User avatar
May 11, 2014
4275 posts
4876 upvotes
Iqaluit, NU
ilusa wrote: Buy Low... Sell High

Yet when prices are low people do the exact opposite ;)
There is also the concept of not trying to catch a falling knife. It is correct to buy low, but we haven't hit bottom.
Deal Fanatic
User avatar
Oct 9, 2008
5681 posts
2233 upvotes
Thornhill
xgbsSS wrote: There is also the concept of not trying to catch a falling knife. It is correct to buy low, but we haven't hit bottom.
+1

There are multiple ways to play oil stocks right now. I'm personally more interested in purchasing only AFTER current down-trend shows signs of a reversal. I don't care that I may not be buying at an absolute bottom for highest risk/reward.

I'm more interested in managing my risk for the long-term uptrend only after stabilization.
Penalty Box
Dec 27, 2013
8003 posts
3988 upvotes
Toronto
Or you can just dollar cost average down and up. I love how you guys talk about catching the falling knife or reversal patterns like you're aall pro traders.
Deal Addict
User avatar
May 11, 2014
4275 posts
4876 upvotes
Iqaluit, NU
ksgill wrote: Let me know when we have hit the bottom so that I can buy more.

[IMG]http://m.mkd.mk/files/styles/statija/pu ... k=VKuRFeFa[/IMG]
You don't need a crystal ball. I would buy when markets have calmed down a bit. I would rather lose a small amount of gain from not buying at the very bottom than buying before the bottom when we don't know where the bottom is. Look at the headlines "Oil Crash" "Oil breaks through $50 US." I probably could could buy oil now and profit years ahead, but why not wait once we have a calmer sentiment and then buy? At the way the markets are churning, you might as well be patient for all we know oil could go down further. In the meantime, I'll keep my cash holding earning some interest.
Penalty Box
Dec 27, 2013
8003 posts
3988 upvotes
Toronto
ksgill wrote: If I were to speculate, now would be the time to invest in oil stocks because things look bleak. Another reason why now is the right time is that Jeenyus1 wants you to hoard cash and wait. Both equally good reasons IMO :lol:
I agree.

Also if you have been watching oil stocks the biggest hurt was a few weeks ago.

Clo and xeg hit their all time lows about three weeks ago and oil was above 55.

Now oil is below 50 and clon and xeg are still higher than there lowest point three weeks ago.

So explain how come the lower oil price didn't make the price on the etfs fall even more than three weeks ago.

Even VDE didn't move much or as much as a frw weeks ago.

So i think all this stuff has been priced in. Unless another wild announcement comes out i think it will be steady as the short squeeze runs it's course
Penalty Box
Dec 27, 2013
8003 posts
3988 upvotes
Toronto
xgbsSS wrote: You don't need a crystal ball. I would buy when markets have calmed down a bit. I would rather lose a small amount of gain from not buying at the very bottom than buying before the bottom when we don't know where the bottom is. Look at the headlines "Oil Crash" "Oil breaks through $50 US." I probably could could buy oil now and profit years ahead, but why not wait once we have a calmer sentiment and then buy? At the way the markets are churning, you might as well be patient for all we know oil could go down further. In the meantime, I'll keep my cash holding earning some interest.
If you're buying for long term then everything you said is irrelevant.

I don't think you should go all in either

Anyway the logic that you should wait is flawed because that logic assumes you know that it can go lower . You dont know that.

For all you know you wake up tomorrow and oil is at 100. It's happened before. Remember hurricane katrina?
Deal Fanatic
Mar 24, 2008
6009 posts
2279 upvotes
Toronto
xgbsSS wrote: You don't need a crystal ball. I would buy when markets have calmed down a bit. I would rather lose a small amount of gain from not buying at the very bottom than buying before the bottom when we don't know where the bottom is. Look at the headlines "Oil Crash" "Oil breaks through $50 US." I probably could could buy oil now and profit years ahead, but why not wait once we have a calmer sentiment and then buy? At the way the markets are churning, you might as well be patient for all we know oil could go down further. In the meantime, I'll keep my cash holding earning some interest.
You haven't been investing for long, have you? The headlines (aka noise) will always be there and the stock market has always been volatile. You saw similar headlines in 2008 for example and that BTW was the best time to add to your positions.

Let me ask you this, if you are in it for the next 25 years, why do you care if the stocks you buy today dip 10% next year only to recover by 30% in the following 10 years? Are you an investor or a speculator?
Deal Addict
Aug 12, 2004
4469 posts
2119 upvotes
Calgary
daivey wrote: Or you can just dollar cost average down and up. I love how you guys talk about catching the falling knife or reversal patterns like you're aall pro traders.
Exactly, I did dollar cost average in 2001, and I lowered my dollar cost average quite a bit over the next months, I'm still holding on for that big pop back up!

[IMG]http://magazine.globeinvestor.com/images/issue2/nt.png[/IMG]

:facepalm:

The whole average 'down and up' is as silly as trying to time the market, in fact I think it is worse as it makes for some belief that you are averaging down your losses in the odd chance that it goes back up in the near future. Again, people need to do research, and buy / sell accordingly. Not every company will be surviving this, buying what seems to be a 'bargain' and averaging down as it goes down further may not be so great if the company goes bankrupt, or gets bought out at a 90% discount in a year.

This falling knife will hit the ground for some companies. There are for sure some great buying opportunities, companies that are well diversified will weather the storm quite well, and are heavily undervalued. I highly question some of the names being thrown around on this forum though.
Deal Addict
User avatar
May 11, 2014
4275 posts
4876 upvotes
Iqaluit, NU
daivey wrote: If you're buying for long term then everything you said is irrelevant.

I don't think you should go all in either

Anyway the logic that you should wait is flawed because that logic assumes you know that it can go lower . You dont know that.

For all you know you wake up tomorrow and oil is at 100. It's happened before. Remember hurricane katrina?
Not at all. You can buy long term, but buy it strategically as well. And no, oil will not be $100 tomorrow. Market was different back then as supply was tight. Right now, supply is overloaded with no abaitment. In a few years, maybe. There is nothing wrong with buying and holding, but there is also nothing wrong with waiting for the storm to blow over before going in. I am siding with the latter on oil for now.

Top