Dealing With Losses

Unfortunately most investors in general and energy investors in particular are probably looking at some pretty alarming losses in their portfolios after the events of the last few weeks. Over time your performance as a trader or an investor doesnt depend on whether you have any losses, as some positions going against you is one of the few certain things in a traders world. What counts in the long run is how you deal with them when they come.Understanding that not all investments will work out is the first step in dealing with adversity. If you know that sometimes even

Why Appearances Can Be Deceiving In European Oil Markets

When markets in general or particular sectors come under pressure, those of us of a contrarian bent start looking around for bargains. Oil company stocks and European stocks have both been under enormous pressure recently, so many are looking at European oil stocks as particularly cheap. That is only natural and is generally a good investing strategy, but some degree of care is called for. Sometimes a cigar is just a cigar and sometimes stocks that have dropped have done so for good reason. To demonstrate that point, lets take a look at two large European diversified oil companies, Total

One To Buy On The Dip

The last month or two have seen energy stocks, and oil and gas exploration and production (E&P) stocks in particular, become the victims of a perfect storm. Oil prices, on which the value of their assets is based, have been steadily falling. The stock market in general has been under pressure as traders anticipate the end of Quantitative Easing by the Federal Reserve, which also raises the prospect of higher interest rates. That is bad news for E&P companies that are generally quite highly leveraged due to the high upfront costs of acquiring land and then drilling for oil and

A Big Pension Fund Is Investing Heavily In Clean Energy. What Should You Do?

Earlier this week, one of the largest pension funds in America, the California State Teachers Retirement System (CalSTRS) made an announcement that was of particular interest to energy investors. They announced that they would be nearly tripling the amount they have invested, bringing it to around $3.7 Billion. Obviously, that a fund of that size is to step up investment in that sector is good news, but investors should be careful not to read too much into the announcement.First, lets look at what they didnt say. They didnt, as some coverage of the news has suggested, say that they are

Emerson Electric (EMR): Even The Opportunity For A Profit Makes Me Mad

As I advance in years I find that, unlike many people, fewer things make me angry. I guess I am just coming to terms with the fact that the world doesnt always operate in the way I think it should, but seems to be doing pretty well all the same. One thing, however, that does still stir some anger and frustration is when a corporation, or more accurately its stock, is punished for poor short term results when the long term outlook is positive. Such is the case with Emerson Electric (EMR).When, in early August, Emerson announced their earnings and

This Natural Gas Giant Is Worth The Risk At These levels

Chesapeake Energy (CHK) is one of those companies that just dont seem to be able to get out of their own way. They have been dogged by controversy over the last few years. Those that follow the energy sector will no doubt remember that founder and original CEO Doug McClendon retired in April of last year amid accusations of irregularities surrounding $1.1 Billion of loans that he had taken from the company. This week came the announcement that the Michigan Attorney General was bringing fraud and racketeering charges against CHK, stemming from their practices in acquiring land leases in the

Two Different Uses For Obvious Chart Points

I am not one to baffle with overly technical analysis when it comes to charts. To me, the more obvious the pattern or point is, the more useful it is. The most obvious and basic points to identify on a chart are support and resistance; the highs and lows that a stock has touched over a given time period. The more times it has bounced off that level, the more significant it becomes.The significance comes in two ways. Obviously, a breakout below a support level, for example, can result in a quick move down, while a bounce off of it

Buying Coal Stocks Is Still Too Risky: Shorting This One Isn’t

I have been contributing here for about six months and in that time I have covered most aspects of the energy markets, with one glaring exception. Not once have I mentioned coal. There is a good reason for that. I regard coal stocks as inherently too risky and, without wishing to be too blunt, I wouldnt buy them with somebody elses money, let alone my own.Risk is a funny thing, or rather our perception of it is. I well remember sitting in a restaurant with a good friend who was horrified by my choice of tuna as an entre. Dont

Why A Supposed Telecom Company Should Be In Your Energy Portfolio

I am, as regular readers may have gathered, somewhat of a contrarian by nature. I put that down to nearly twenty years in currency dealing rooms around the world, where such an attitude serves well. My wife might believe that it is just that I am an awkward so and so, but that is my story and Im sticking to it. Anyway, as a contrarian, a stock that has lost around 40 percent in three months is always of interest to me; hence my initial interest in Mas Tec Inc. (MTZ). The first thing that might strike you about the

Playing The Coming Mexican Oil Boom

For more than seventy years the oil reserves of Mexico have been the exclusive property of the state run oil company Petroleos Mexicanos, or Pemex. That changed at the end of last year when the Mexican parliament agreed to amend the countrys constitution and allow foreign oil companies in. That decision prompted many to start guessing who would benefit most, with the usual suspects, Exxon Mobil (XOM), Chevron (CVX) and BP (BP) heading most peoples lists. On Wednesday of this week, though, we found out why the big oil companies may not be the best way to play the coming