Strictly: Drilling and oil-field services Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: SliderOnTheBlack who wrote (82685)	12/30/2000 11:09:20 AM
From: JagBrad	Read Replies (3) of 95453

I think your early again. Next week will be more up in the energy sector due to continuing momentum. Another Barron's Article Powerful Trend Why a hedge-fund pro is betting on energy stocks for the long term An Interview With Gerald Jordan by Sandra Ward Q: What are some of the names in the Jordan-Simmons Global Energy fund? A: There's Magnum Hunter; Apache; and Spinnaker. These are all natural-gas companies. Two other stocks we own are Valero Energy and Tosco, refinery companies selling at about six times earnings. Natural gas is one sector that I think is good for probably the next year. I can eat these companies into January of 2002 because this gas problem is going to be a problem again next year, unless we are in a recession. A big problem with gas is it's not easily transportable. If you want to know where I'm going to be in five years in energy, I expect to be investing in natural-gas processing facilities: If the North American economy is going to grow, we are going to need more natural gas. In our astute energy resource planning, we have built a questionable infrastructure that relies on natural gas. Ultimately, we are going to have to process gas overseas where there is an abundance of it in places like Indonesia, Africa, Algeria. The problem is you have to liquefy it, cool it, compress it and transport it in huge pressurized vessels. Right now, we get about 2% of our gas resources from abroad in that manner. As you can appreciate, it is a heck of a lot more expensive than hooking up a pipeline to a well and delivering it to the consumer. But it's going to have to happen. Our world is going to have to change dramatically if people want to continue to drive high-horsepower cars and heat their homes adequately. I think you are correct just early and I like better odds. I think puts are the way to play this but am looking for longer time frame then what is available in the options now. Shorting the stock eats up to much margin on to few stocks while I wait for the easy money Here is what I see now for BRR Jun01 max options BR Aug01 COG Aug01 CRK Augo1 FST Jun01 PXD Jun01 TMBR Jun01 XTO Aug01 HSE Jun01 I am getting close on your first pick APC Andarko #1 on your list has Leaps out to JAN03 and if it goes up some more the premium will get better. Stock as you say is in the high 70's to 80's. October 99 to February 00 it was trading in the high 20's to low 30's. It won't go that low for a while but 40 to 50 area should be a good cover. I think I will stagger some in the money puts in Aug01, Jan02 amd Jan03 soon. With all the news stories about energy we must be getting close to the top. On the others looking for Aug and Sept dates for a little more breathing room on smaller bets. Story's in the papers make me wonder how far this gas & oil bubble will go. Now if your so inclined tell me why i'm wrong. (Your Specialty) <VBG> as I do enjoy your post. Only things I have now are Mar50 puts "COJ" on Citigroup which is giving me some sweaty palms. Nem I havn't sold cause I didn't want more profit in Y2K. PAAS which seems like a steal at 2-9/16 to 2-5/8 XAU calls for Mar55 "XAUCK" @1.5 each I don't own any oils now cause I took the money and ran to soon. But I have 90% cash and am sleeping well. Thats my story and I'm sticking to it <GGGGG> Brad

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next