Miklosh
I like some other OS stocks but investments in this beaten-down area can be a test of patience. Its really a play on when oil markets will recover, 1 week, 1 month, 1 year, 10 years, who knows ? I think sooner rather than later but if you are not at the lower end of that range, I'd say stay away. I find the best buying technique is when you are sure they are at rock-bottom, set a price 10% below that and buy an opening position there only if it hits it. MB's thirds strategy works well here. Only buy additional thirds at additional 5 - 10% drops. You don't get your price, don't buy. Three thirds, no more, you're fully loaded. Whether it is a trading position or a long-term hold really depends on market direction and oil price direction.
I like RIG in deepwater, CXIPY in innovative equipment, SDC as an international driller with a pristine balance sheet, FGI in the fab yards, WFT in services and PGO and VTS in seismic. I don't really like the boats, the shallow water drillers or the land drillers. I'am looking for NG plays but haven't found any yet that I like. Gas wells deplete much faster than oil and gas use is increasing faster than oil use. All you hear about drilling is oil, oil, oil but actually 75%+ of current rigs are looking for gas. I've also been selling puts on low-priced issues like FLC PGO WFT FGI since I feel that oil markets will get back on an upward track by expiration in mid-summer.
Good luck. You may need it. Even our glorious leader MB has been frustrated by this sector.<VBG>
John |
