The Best Stocks for Low Oil Prices


This isn’t a situation where there is a question of if; in fact there isn’t even a question of when.

The BIG TRADE of 2015 is happening now.

Right now there is a group of companies that are generating huge windfall-like cash flows every day—due to low WTI oil prices in the US.  The longer oil prices stay low the more cash these companies generate.

If you own oil producers—you should own these companies as a hedge for your portfolio.  If you don’t own oil producers—you should own these companies because business is booming thanks to low oil prices.

We are only two months into 2015 and these companies have already generated enough cash flow to ensure that they demolish the first quarter estimates of analysts following the stocks.   When those first quarter earnings come out it will be too late.  The market will have sent these stocks soaring.

I’ve been watching this trade develop since last July when oil prices started dropping.   I spent the last six months of 2014 biding my time and researching this opportunity.  The trade is now here and the opportunity is even bigger than what I had hoped it would be.

That is why I told my subscribers that this the only place where I’m investing my money now.

These companies have already had a terrific first two months of 2015, good enough to ensure a great market reaction when first quarter earnings are released.   But that is just the start of something even bigger, in fact I believe the last two months are only the tip of the iceberg.

The key to this trade is the amount of oil that is being stored in inventory in the United States.  Inventory levels are already at 80 year highs and I think inventory builds stay stronger for longer for two reasons:

1)    When the US oil rig count drops, it leaves the best crews managing the best rigs in the sweetest spots of the best plays in North America.  History says production doesn’t drop that much for a year.

2)    US producers are getting their debt covenants waived by their lenders—seriously!

There will be continued pressure on those high inventory levels—and that is terrific news for the companies I’m pounding the table on.

The market is picking up on this and stock prices of these companies are starting to move.  The BIG TRADE for 2015 is here and the train is about to leave the station.

The company that I have alerted my subscribers to is my favorite TWO stocks to play this trade .  The really exciting thing about these companies is that they have a second huge catalyst in addition to the cash flow windfall that it is already enjoying.

That is why this particular company is by far and away my #1 pick for 2015.   Even without the cash windfall coming from oil prices I would still be buying shares of this company.

The catalyst I’m referring to is fully under these companies’ control.    It is an event that is going to happen in 2015 and when it does it will be a complete transformation for this company.  The event is all about unlocking billions of dollars in asset value that have been hidden on this company’s balance sheet and ignored by the stock market.

That value is going to be unlocked in the coming months at the same time the company is posting record cash flows.

Trading opportunities like this—great downside protection and huge upside—almost never come along anymore.   This entire sector is going to crush analyst expectations in the first half of 2015 and my Top TWO companies in the sector have a major catalyst on top of that.

This is one of those asymmetric opportunities where you don’t have to take much risk to get exposure to a huge short termopportunity.

I’ve had 149 triple digit stock winners since opening my OGIB portfolio to subscribers in 2009 and none of them looked this good when I first bought them.

I’m excited about this opportunity and even more excited to share it.  I’ve had big ideas before, but none that offered two catalysts this big in such a short time period.

Successful investing is all about picking your spots and then acting decisively.  I’m convinced now is one of those spots.  Get the “scoop” on these companies RIGHT HERE.