I love cheap stocks. I love them even more if there is a good runway for growth.Nothing is more exciting than finding a high-growth gem with a single-digit multiple. But the truth is, those are rare. If you want to own growth, you are going to have to pay up.This...
The Problem Is – Markets Don't AlwaysAnticipate The Downside
Right now the Dow Jones Index doesn't look that bad--in the last few few months there have been higher lows, and an investor could reasonably think the market could break out, not break down. But sentiment--and a lot of economic data--is quite...
I have a hard time saying this sometimes—but The Big Money in energy is still in renewables. I mean, oil especially but also gas stocks are (across the board) cash cows right now—like never before in modern energy history—and they’re so CHEAP—like, 2-4x cash flow. That’s half to one-third...
Everyone knows that Iraq is an important oil producing country. But Iraq is more than just important, it is critical.
Iraq is so important that in October of 2012 the International Energy Agency (IEA) released a report called “World Energy Special Outlook On Iraq”.
In that report the IEA concluded that in 2035 oil prices would be...
The Trade
Buy MPLX units, sell May $40.00 calls against the long position
Extended Commentary
We are back to our bread-and-butter philosophy this month, writing/selling a call as opposed to last month's buying a call--on this same MPLX-NYSE stock.
(That trade has by far been our most lucrative to date--buying the Sept 24...
I’m going to run through a few seemingly unrelated facts here fairly quickly, but the message is: the North American energy market is so opaque right now—because fundamentals are changing so fast—that my #1 2015 credo—SMALL POSITIONS—still holds true. And be prepared to change your mind in a hurry.
This...
US energy stocks outperformed Canadian ones last year—but in the last few months, E&P equities in the Great White North have soared. Why? The low Canadian dollar has a lot to do with it, adding an extra 6-10% to the Canadian oil price—which of course is ALL profit.
The second...
I bought a lot of solar stocks back in January. I see solar as the big energy play of 2023, not hydrocarbons. Junior solar developers are REALLY cheap--but not because of cash flow multiples. Multiples are much higher than oil & gas. But the take-out value of solar projects--because of...
