Investing

is now the time to invest in oil stocks?

  • Last Updated:
  • Oct 13th, 2020 5:16 pm
Tags:
Jr. Member
Nov 27, 2019
151 posts
112 upvotes
MrMom wrote: The upside is that HSE hasn't been this cheap for close to 40 years. Thinking Face
Yes, but I made mistake investing in an individual stock without knowing almost anything about the oil industry. If it’s the case, the best way to invest is to stick with an index. At least, XEG would pay me over 5% dividend while waiting... Ok, lesson learned!
Deal Addict
Aug 17, 2008
4274 posts
3417 upvotes
florenntina wrote: Yes, but I made mistake investing in an individual stock without knowing almost anything about the oil industry. If it’s the case, the best way to invest is to stick with an index. At least, XEG would pay me over 5% dividend while waiting... Ok, lesson learned!
Oh. I was being sarcastic.

Have never held HSE in my PA, but I am familiar with them. Virtually the entire sector has been kicked in the family jewels again this month. Exceptions such as BIR, KEL and WCP, are flat for Sept. Broadly speaking, M&A activity and NG are the minor bright spots.

Go back through this thread and you'll see there's great potential, but nothing imminent. Based on your stated knowledge of this industry, avoid. It's a Value Trap.
On this day in 1885, Charles Merrill was born in Green Grove Springs, Fla., the son of a family doctor. With Edmund C. Lynch, he founded Merrill, Lynch & Co. in 1914 to “bring Wall Street to Main Street.”
Jr. Member
Sep 23, 2016
115 posts
23 upvotes
lol Based on this video analysis, HSE's intrinsic value is roughly $39, that's 1000% upside based on last friday price!!! But I am not greedy... I only need $15 bucks to break even :P Anyone still hold the HSE bag too??

Jr. Member
Nov 27, 2019
151 posts
112 upvotes
Me, obviously, and I plan to hold it for now. Book value per share is $14.55.
Member
Jul 30, 2012
416 posts
404 upvotes
florenntina wrote: Me, obviously, and I plan to hold it for now. Book value per share is $14.55.
Book Value is pretty much a meaningless metric in the O&G sector as this changes with NAV write-downs, asset sales, etc. With most asset/company(s) sales in the sector over the last 5 years, book value is usually written down substantially.

Key metric to look at in the industry is Free Cash Flow yield (net of CapEx) and "the best of the worst" in this regard (large caps) is CNQ currently. Everyone with money in the sector (yes, me too) is a bag holder, although I would expect better beta out of a CNQ, SU on any kind of catalyst than HSE. On that basis alone, XEG should outperform HSE on any upside.

Additionally, HSE is the weak sibling of the large cap group with less Institutional interest. Moneyflows generally go to SU/CNQ first.
Jr. Member
Sep 23, 2016
115 posts
23 upvotes
yay another down day... on the bright side, HSE is not down as much as the others LOL
Deal Addict
Nov 9, 2013
3906 posts
3590 upvotes
Edmonton, AB
I wonder what the JT Green Initiatives (to be discussed in this weeks' Throne speech) will have for the O&G industry. Probably lots of green spending and then some lip service to O&G to appease Western conservatives.

Also, has Suncor ever made any comments on a Green Pivot?
Keep calm and go long
Deal Fanatic
User avatar
Jun 11, 2001
8687 posts
878 upvotes
My goodness what a blood bath... man this is just the start of the week... HSE will probably slip below $3 and SU will drop below $16 most likely. Luckily have don't have much of either so buying more won't be a problem... ENB is down 2% only today which is kinda a win, LOL!
vince201 wrote: yay another down day... on the bright side, HSE is not down as much as the others LOL
...zzz...zzz...zzz...

www.heatware.com
Jr. Member
Sep 23, 2016
115 posts
23 upvotes
sleepyguy wrote: My goodness what a blood bath... man this is just the start of the week... HSE will probably slip below $3 and SU will drop below $16 most likely. Luckily have don't have much of either so buying more won't be a problem... ENB is down 2% only today which is kinda a win, LOL!
Haha, don't jinx the $3 HSE, I have a large position!!!
Sr. Member
Jul 13, 2007
971 posts
504 upvotes
Toronto
Stryker wrote: Shell launches major cost-cutting drive to prepare for energy transition

Sep 21, 2020

LONDON — Royal Dutch Shell is looking to slash up to 40% off the cost of producing oil and gas in a major drive to save cash so it can overhaul its business and focus more on renewable energy and power markets, sources told Reuters.
I always find statements like this funny. If they could cut the cost by 40% before, why didn't they do it before? What kind of management did they have that let the business get so obese? It's like when Canadian telecoms threaten to cut 4 trillion jobs if the government doesn't let them kill competition. If they don't need those people, why are they still there in the first place?

Maybe Shell meant cutting production? Or is that phrase too dirty for a dirty industry?
Deal Fanatic
User avatar
Sep 21, 2007
5083 posts
473 upvotes
Winnipeg
sleepyguy wrote: My goodness what a blood bath... man this is just the start of the week... HSE will probably slip below $3 and SU will drop below $16 most likely. Luckily have don't have much of either so buying more won't be a problem... ENB is down 2% only today which is kinda a win, LOL!
I have a buy limit set at $3 for HSE.. to quadruple my position.. which isn't much.. I only have 250 shares.. so adding 1000 in.. I'm praying it spikes when I average in.. then getting the heck out lmao.

edit: can't wait for my $2.50 dividend payout :D
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
Deal Addict
Aug 17, 2008
4274 posts
3417 upvotes
(h/t @SpotMonthEnergy)

Canada’s No.1 Oil Hub Lost Its Only School
Sep 21, 2020, 2:30 PM CDT

https://oilprice.com/Latest-Energy-News ... l.amp.html

Excerpt;

"Hardisty, Alberta – the major oil hub in Canada that serves as the basis for the Canadian oil benchmark – doesn’t have a school anymore, and the community fears that without a school, the town will struggle to attract more residents.

Canada’s oil delivered at Hardisty, Alberta, serves as the basis of forming Western Canadian Select (WCS), the benchmark price of Canada’s heavy oil."
On this day in 1885, Charles Merrill was born in Green Grove Springs, Fla., the son of a family doctor. With Edmund C. Lynch, he founded Merrill, Lynch & Co. in 1914 to “bring Wall Street to Main Street.”
Jr. Member
Nov 27, 2019
151 posts
112 upvotes
faken wrote: I have a buy limit set at $3 for HSE.. to quadruple my position.. which isn't much.. I only have 250 shares.. so adding 1000 in.. I'm praying it spikes when I average in.. then getting the heck out lmao.

edit: can't wait for my $2.50 dividend payout :D
Should be paid on Octobar 1st. Hopefully the inflation will not drank your coffee Face With Tears Of Joy

Top