Investing

is now the time to invest in oil stocks?

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  • Jan 21st, 2021 10:45 am
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Deal Addict
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Jun 2, 2009
2090 posts
95 upvotes
Toronto
Firebot wrote: People have been talking of the electric car which has been manufactured since the 1960's. The technology is not there. Tesla (as cool as it is) being the closest thing to a viable product is not the answer. All that electric cars will do should it ever hit the market is drive the price of electricity sky high, driving people back to oil. Even then, electricity in Canada is mostly generated from non-renewable sources. Simple supply and demand is what is at play.

http://www.electricvehiclesnews.com/His ... storyV.htm

Again we are talking of flying car syndrome. What seems so technologically close is actually very far away from economical and practical use.

It simply comes back down to the problem that is a lot more cost-effective oil available than prevously though even 10 years ago through techonogical advances and this oil is being extracted now through fracking and horizontal drilling. The US who was a net importer of oil, is now fully self-sufficient and able to produce more oil than Saudi Arabia. If anything cheap oil is going to significantly detract the push towards alternatives. The whole point of alternatives is to get away from a relative expensive limited non-renewable source of energy that is highly pollutant. The alternatives have to be better than what it is replacing.

I know that many try to figure out oil and energy without being in the industry, but some of these predictions are Jetsons science fiction territory.
The electric car is at the cusp of being a valid and viable option. Tesla proved it can be done. Now it's just a question of how cheaply it can be done. There's no denying the movement towards renewable energy sources. You're only talking about 50 years of development of electric vehicles which is nothing compared to the development of ICE. I don't think there is turning back on this technology now.

I think the real question we should be asking is, while there is more cost-effective oil available now, *how* cost effective will it be when oil prices are dropping and still haven't found support yet? Will fracking and horizontal drilling still be profitable with low oil prices? Can these companies sustain prolong periods of low oil prices?

What I think is that people have had a taste of expensive oil and a taste of the possibilities of leaving oil and that they will continue on that path towards renewable energy sources.

I don't drive more now that fuel is cheaper, nor do I stop looking at fuel economy when looking for new cars.

I know for myself, as soon as a reasonable electric vehicle both in specs and price comes on the market, I'm out of the gasoline car. I suspect there are lots of people like myself.

How this translates to current oil prices and producers, I'm not too sure. I want to place my bet saying we won't see those record highs anytime soon.
Deal Fanatic
Dec 5, 2009
5628 posts
3394 upvotes
techcrium wrote: What in the world does that even mean? How do you know a bottom has formed and it is not a dead cat bounce hence another knife catch?
Dead cat bounce is a risk but regardless I would wait for a sustained upward move rather than buy on the way down. Or if you want to buy on the way down then buy in little chunks and dollar cost average.
Deal Fanatic
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Oct 9, 2008
5681 posts
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Thornhill
My watchlist in particular order of interest: XOM, COP, KMI -though debt/equity is questionable, EOG, KED & IMO.
Member
Mar 7, 2011
202 posts
31 upvotes
Surrey
Anyone looking at Husky? I want to start buying shares to hold for the long term.
Banned
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Jun 22, 2012
4737 posts
697 upvotes
Shhanada
MMMM wrote: You read the link you posted?

Prototype is 5 years plus away
working production version is 10 years out and it would barely fit on a large truck
a version to power a plane will take a little longer
tons of obstacles to overcome including money! Gobs of it!
His claim was that there are "no words of technology change" when in fact many people are talking about various scenarios where the need for oil is disrupted. Even you are talking about pro's and con's and slapping a delivery date on compact fusion. Remember, it doesn't need to work or be readily available, as long as people *believe* it could happen that could take the wind out of oil's sail in ways we've never seen. Perhaps it already has.
Deal Addict
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Jan 4, 2009
4030 posts
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on the links
Wazzaa4u wrote: Anyone looking at Husky? I want to start buying shares to hold for the long term.
So invest!

If I told you that I own 3K shares (which is the truth), should that in any way influence your decision?? Do you really need someone here to pat you on the head and say "it'll be ok"
Jr. Member
Aug 18, 2013
169 posts
57 upvotes
Toronto
theredstar wrote: I would be very careful about oil stocks. I think oil will forever be cheap. Tar sands will not be economical anymore. You'll see giants like suncor and canadian natural resources go bankrupt. You'll be seeing $10 crude prices soon. Also, renewals are coming online so we won't need oil in 10 years.
I think my eyes are bleeding from reading this post.
Deal Fanatic
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Oct 9, 2008
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Thornhill
Wazzaa4u wrote: Anyone looking at Husky? I want to start buying shares to hold for the long term.
Husky's stock price is still overvalued relative to its intrinsic value. I also don't like their outstanding shares, no growth in share buybacks.
Penalty Box
Aug 11, 2005
4175 posts
1422 upvotes
Will probably wait till the new year to see if things stabilize a bit.
Deal Addict
Nov 28, 2010
1305 posts
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Brampton
Was considering selling my "garbage" pwt shares like someone put it. So glad I held on and might sell soon at a gain instead
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Jan 3, 2013
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Sidney
Dead cat bounce? See CPG the last two days?
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Apr 12, 2012
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favelle75 wrote: Dead cat bounce? See CPG the last two days?
Its a high quality stock, I can only see it going up from here on out.
Deal Addict
Jul 7, 2013
1267 posts
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North York
Wazzaa4u wrote: Anyone looking at Husky? I want to start buying shares to hold for the long term.
I shorted husky. bought around low 22 couple days ago and sold now for 25. Pretty satisfied. Theres too much chaos going on for me imo, rather just wait till things settle.
Deal Addict
Jan 3, 2013
2141 posts
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Sidney
zobi123 wrote: Its a high quality stock, I can only see it going up from here on out.
But 20% in two days??
Deal Addict
Dec 11, 2007
1839 posts
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Markham
endokuken wrote: Was considering selling my "garbage" pwt shares like someone put it. So glad I held on and might sell soon at a gain instead
There are obviously 2 schools of talk here on RFD. One is the investor community, and the other is the speculative/trader community.

You're taking commentary given by the investor community, and applying it as a speculator/trader, and saying good thing you didnt "listen" to them. You have no one to blame but yourself for not understanding the context of the commentary.
Deal Addict
Sep 6, 2010
1935 posts
699 upvotes
Vancouver
So now what market timers? Today is called follow through. Keep convincing yourself to wait on the sideline and not commit money.
Sr. Member
May 26, 2008
597 posts
111 upvotes
gwplant wrote: So now what market timers? Today is called follow through. Keep convincing yourself to wait on the sideline and not commit money.
Didnt you buy BTE and it tanked two days later and is down 30% since then. Some people have different investment strategies. No one is right or wrong.
Jr. Member
Sep 27, 2004
161 posts
18 upvotes
Vancouver
Is there a mathematical formula to calculate the intrinsic value?
Deal Addict
Sep 6, 2010
1935 posts
699 upvotes
Vancouver
icon20 wrote: Didnt you buy BTE and it tanked two days later and is down 30% since then. Some people have different investment strategies. No one is right or wrong.
I have been adding as indicated from each time I posted buys....BTE.TO up 20% today. I don't time markets I invest in good companies for the long term.

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