I'm not ready to call a bottom in oil prices yet,said Richard Tallis,an energy analyst at Capital One,but it is a good time to focus on oil stocks.Currently I'd go with individual names rather than an etf.You want names with a strong balance sheet.Concho Resources works in the Permian basin.They have a long track record and a very strong balance sheet.They will add acreage over the next few years.*
The general consensus on the price of oil is,it may go down even to the upper 30s,but will rebound to the 60s 0r 70s in the second half of the year.*
Now is a good time to get in,says Chad Brownstein of Rocky Mountain Resource Holdings.It's time to hit the oil services sector.For the retail player,find oil services companies that are trading at one to two times cash flow,and with late-term debt at not more than two times leverage;prudent balance sheets;and long-term contracts.
The equity trades for mid-size companies are down 70%.They're at bottom,bargain basement prices.Start with your toe in the water here.Mid-40s is the bottom of oil prices.OPEC played their card in early November.They hurt the American companies,but they're not going to hurt themselves.I can see that in mid-summer the cards will be in place,Mr.Brownstein observed.*
Concho Resources(CXO),Market Vectors Oil Services Fund ETF(OIH)
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