I am expecting a fairly sharp correction in the price of Oil and Gas companies. The increased production being bantied about, and perhaps a cooling of terrorism concerns could remove the "shortage" and "terrorism premium" that have run up the prices so sharply.
That being said, i would consider any such correction a major buying opportunity, because even at 30-35$ barrel crude and $5 NG, these E&P companies are going to make huge profits.
Any sucessful or terrible terrorist act makes all the above words mute. Al Quada has made it clear that it wants to wreck havoc on Western economies. That attack on WTC was a major effort to do so. Their plan seems to be going quite well, unfortunately.
I remain overweighted in various energy stocks and sectors, though least in drilling companies. I own DVN,CRK, BP, VLCCF, CNX, NRP, RRI, WMB, Fido Select NG, and a few others.
I do not trade these stocks. larry |
