Tag: Crude Oil

How To Manage A Natural Resources Fund When You're Bearish On Natural Resources

Posted on by Adam Feik

Adam Feik - INO.com Contributor - Energies


I wrote a couple weeks ago about whether we're seeing the end of the oil supercycle. In my article, I heavily referenced a money management firm (WHV Investments) that has been bullish on energy investments since predicting a “supercycle” in 2000 (great call at the time!). Despite the massive turmoil since last June, WHV continues to be bullish.

An oil-bullish money manager

To get a flavor for stocks owned by a manager who is bullish on the continuation of the energy supercycle, check out this partial list of WHVIX's stock holdings. Granted, the holdings data are a few weeks old, but WHV tends to have very low turnover and says it’s sticking with its thesis. WHV management believes we’re still in the oil supercycle; accordingly, WHVIX owns stocks like these (as of 12/31/2014, source: WHV.com; this list represents selected stocks rather than a complete Top 10 list):

WHVIX Natural Resources Stock List

* “Bullish signal” refers to whether MarketClub is displaying “green triangles” for both the intermediate - and long-term outlook.

Of the above holdings, WHVIX appears to have (during 4Q 2014) increased its exposure to Suncor, which derives a large plurality of its business from “downstream” refining and marketing activities. Additionally, Suncor has significant development efforts in Canada’s Athabasca oil sands. Continue reading "How To Manage A Natural Resources Fund When You're Bearish On Natural Resources" →

Want to Avoid Oil's Gloom? Turn to the Sun, Says Outsider Nick Hodge

Posted on by admin

The Energy Report: You call yourself an "outsider," and have founded an investment club of that name. In what sense are you an outsider?

Nick Hodge: Being an outsider stems from my upbringing. Both my parents were middle to lower middle class, and I never had anything given to me. I've always had to work for what I have, starting with a lawn-service business when I was 12 and working my way through college as a butcher. I look at the "mainstream" with a skeptical eye. I'm a contrarian. I'm not on the inside of big business, big banking and politics, and don't want to be.

The Outsider Club has been around for about a year now. I founded it after writing for several newsletters over the past decade about energy and speculative investments.

TER: What does being an outsider mean with regard to your views on energy?

NH: I'll give two examples. First is my belief in the peak oil theory. Second is my early adoption of a belief in renewable technologies, such as solar and smart-grid technologies.

TER: It would be safe to say you're not an admirer of our financial elite? Continue reading "Want to Avoid Oil's Gloom? Turn to the Sun, Says Outsider Nick Hodge" →

What's Ahead In 2015?

Posted on by The INO.com Team

Here we are, the first day of 2015, thinking about what's ahead this year. There's no doubt about it, 2014 was a good year for most stock investors and we hope you got your share of the pie.

The big standouts to me in 2014 were the mega drop in oil prices and the fact that gold prices have lost two years in a row. The last time that happened was in 1997 – so what's ahead in 2015?

I think that 2015 will offer some amazing opportunities for smart, knowledgeable investors. The key to trading this year is to go with the flow and don't fight the market. I don't know of any market expert who, in January of last year, forecast a 40% drop in oil prices. I'm not sure I heard anyone predicting that gold prices were going to have back-to-back losses two years in a row.

What does that tell you?

The investors or gurus who hold fixed beliefs and feel compelled to defend their market opinions are doomed. Investors who hold rigid market opinions in 2015 are not going to fair well and enjoy positive returns. That's just my opinion, and I reserve the right to change it at any time.

Here is another timeless piece of advice for 2015: Continue reading "What's Ahead In 2015?" →

Jim Cramer Finds A Diamond In The (Rough) Oil Patch

Posted on by Adam Feik

Adam Feik - INO.com Contributor - Energies


What a week for oil and energy. Okay, I know... what a 6 months! Ugh!

In case you're living under a rock (or just need a succinct summary of the carnage of late), oil has dropped about 2% or more every day this week except Tuesday, and looks on track to do so again today (Friday, Dec. 12th). All told, WTI oil prices as of mid-day today have dropped below $58, representing a decline of more than 46% since the commodity’s June 20th closing high of $107.95. In that time, natural gas prices and energy stocks have both given up about 25%, based on the US Natural Gas ETF (NYSEArca:UNG) and the Energy Select Sector SPDR ETF (NYSEArca:XLE), respectively. The Market Vectors Oil Services ETF (NYSEMKT:OIH) meanwhile, is off about 38% since oil's slide began.

Interestingly, this week's big shellacking has seen both oil and the dollar move lower, with the DXY index losing a little more than 1%. Natural gas prices are actually moving higher, and UNG's chart looks to the naked eye like this week could mark the beginning of a bottoming formation.

One small group that's bucking the trend

Last week, I highlighted Enbridge Energy Partners (NYSE:EEP), the Houston-based US affiliate of Calgary-based Enbridge (NYSE:ENB). EEP, ENB, and some other pipeline stocks have been (knock on wood) somewhat bucking the devastation in oil and energy. Accordingly, EEP and ENB continue to be among the only energy investments sporting green Trade Triangles in my MarketClub portfolio.

As fate would have it, ENB made impressively good news the last couple weeks, making a big enough splash to get the CEO invited on for a guest appearance on – wait for it – Jim Cramer's Mad Money show on CNBC. Whatever your vibe about Cramer, you ought to take 8 minutes and watch CEO Al Monaco's performance (here). Continue reading "Jim Cramer Finds A Diamond In The (Rough) Oil Patch" →

Oil Prices Are At Two-Year Lows - Should You Buy Now?

Posted on by admin

By: Eric Winter of Street Authority

Stock exchanges are not alone in seeing prices pull back lately. In at least one case, however, that is actually a good thing.

Drivers both state-side and abroad have no doubt felt the pain at the pump subsiding this fall. In the United States, many gas stations are now hawking unleaded for under $3.00 a gallon -- a welcome sight in my eyes, at least.

Those lower prices have come at a cost to some portfolios, however.

Oil prices have been steadily declining since making highs in June, falling from north of $104 to around $81 at the time this article was written. Considering that nearly every industry is affected by oil in some way, this means there’s a good chance some of your holdings have fallen in tandem.

Naturally, oil explorers, producers, and those along the supply chain have been hit the hardest. Exxon Mobil Corp. (NYSE: XOM), the world’s largest oil company by revenue, has fallen 11% since July. In contrast, the SP 500 is only down 2.6% in the same time period. Continue reading "Oil Prices Are At Two-Year Lows - Should You Buy Now?" →