Silicon Investor (SI) -- The First Internet Community

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.

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

To: Grommit who wrote (56557)	1/4/2016 11:13:05 AM
From: richardred	Respond to of 78774

>My point is that no one predicted a return to $30 oil. IMO, future oil price predictions are guesses. I would agree that any analyst's future price points would be just that, a guess. As Capt' Kirk said to Spock, use you best guess. I can only guess to what an analysts would use in their models. I never thought that oil would go over 100 a barrel. I'll very rarely every invested in oil in the distant past. I was caught will my pants down on the last three oil stocks I bought. I think a couple important points to remember in future oil investing. What price of oil is needed for profitability on each company. Can the company withstand low oil prices with it's current balance sheet. I also think proven oil reserves still have to be written down on many balance sheets. Based on analyst's models. I don't think many balance sheets yet reflect a generally accepted carrying price? That IMO most likely affects bank covenants on more riskier balance sheets. P.S. I personally think some possible Value stocks to focus on here, are the beneficiaries of low oil and Natural gas prices. I think Plastics & petrochemicals would be a good start. I'm looking to get back into TG - Tredegar Corp.again . They have already taken a write-down last qtr. I also know MEOH - Methanex benefits from low Natural gas prices. They just stared up production of a new plant last Qtr.They originally were going to build a plant outside the US. However US NG prices came down to LT attractive pricing levels, so they built here. Message 28865763