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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (55849)	8/14/2015 10:31:18 AM
From: Paul Senior	Read Replies (2) \| Respond to of 78673

Re: "are you heavily weighted in oil stocks that you feel the need to sell out?" Unfortunately, yes. No matter how much each oil/gas company tries to improve its business performance and stock price, it seems so much that macro forces (the price of oil/gas) predominate. Not the demand side for the commodity, but the supply side (esp. Saudi). So a big bet by me in the oil/gas sector seems to now be an big bet that the supply of oil will diminish from the big oil producing countries, and not a bet that the sector will improve because of business performance or from increased product demand. I've just no confidence that the oil supply will rationalize. I'm down 50% or more on some of my small e&p companies. While some of these companies have good hedges, if price of oil doesn't rise within a year or so, debt repayment or refinancing it will become a problem. And my pain threshold is such that I'm just not willing to hold firm awaiting the relief rallies in this bear oil market. So I am eliminating some low-price o&g stocks and reducing positions in some of the bigger names.