What Did You Buy Today?

[fenders53]

(02-04-2020, 03:00 PM)jalanlong Wrote:

(02-04-2020, 01:40 PM)divmenow Wrote: Added to CVX and PSX. With how cheep these stocks are now they may be in my top 5 holdings after it’s all said and done lol

I heard Jim Cramer say yesterday he is done with oil stocks. They are dinosaurs and will continue to decline into oblivion. So this must be a buying opportunity!


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Jimmy is an emotional feller.      So here's my take.  He's mostly frustrated.  There is some reason for it.  Going back 5 years I remember he had a LOT of oil CEOs on his show and they all had wonderful stories.  I can think of at least three that went BK within the year.  Many of them went BK because they got greedy and leveraged into the boom.  So he gives up on small companies and as recently as 2019 he decided oil majors and forget about em.  Makes sense to me because they will survive.  He was very fond of BP and invested in his charitable trust.  I followed him and got beat up some.  I tripled down on BP recently and added an EFT that invests in all the majors.

My opinion is it is a selective buying opportunity in oil.  But fact is new supply can easily meet demand.  There are huge producers currently sanctioned.  Our Prez loves dirt cheap oil because trhe rest of the market benefits.  So don't get sucked into a dividend that could very well fade.  Execution matters and XOM is stinking it up.  Investing big bucks in future production when that makes little sense.  They'll get by with that well enough but this isn't 25 years ago.  We are probably taking more risk in oil than it appears.  I have zero interest in small players.  I think Jim got that part right. Risk/Reward is just not there anymore unless you are an insider playing a ST trade.