How about Oil?

[skiracer]

From first glance they look like they could or need some consolidation. I'm with you about the risk factor right now. To much for me at the moment.

[mrmarket]

I think the reason for the lack of discussion here, is that $$MM never buys oil stocks- maybe an occasional coal stock or something, but the fact that he's already overweight on the sector by virtue of his employee stock holdings in AHC keeps him from buying more oil stocks, and so we spend more time talking about the stocks he does buy instead. By the way, AHC is setting yet another all-time high today, along with the oil price... I'm so jealous because I'm so underweight in oil. That's part of the reason why I just got GFCI, since it's sort of a call option on oil, in that they make money only when the oil companies are scrambling to eke every last drop out of their wells, by roto-rooting their oil pipes with GFCI's $5000/day tools. I figure this will help me catch up, when the oil price finally gets to $90 like they keep mentioning every time they compare today's price to it. Shouldn't be long now...

But I also like that my downside is limited, so that if oil somehow does make it back to the $35 the bozo anal-ysts says it's really worth, I won't miss my small position in GFCI, especially considering how much the rest of my stocks will benefit from that.

Looks like the ANAL-ysts will start changing their oil price from $35 to $40 in their equity models. That will tell their computers to make upward revisions in their target prices for the oil equities. Duh! Ya think???


Speaking of AHC...we're at $129.48.....SWEET!

[billyjoe]

Mr.Market,
Some call it Sweet, some call it Crude.


billyjoe

[[email protected]]

How about VLO

Hey Mr. M.....Any insight on VLO this things was great over the last 2 weeks, got out of my options Fri......any thoughts, it was preforming like TOL was a month ago.....LIke the co. a lot would love to hear any insights from members...Thansk
CH


VLO 120????

[Peter Hansen]

When Barrons Speaks OIL

Since I work in the business, I refrain from any direct comment on the oil industry. However, ask yourself this question:

If gasoline were $10/gallon, would you stop driving your car? If your answer is no, that means prices still have a way to go.

Barrons had article praising Pioneer Oil and Gas......(PIOL.OB) The Chart is not that stellar, but revenues are increasing and P.E. is 5.2. When Barrons writes about a stock .......it inevitably goes up! Of course this is a very speculative penny $1.58 stock ........but it may be worth a look?

[mrmarket]

sorry but I don't think it is appropriate for me to comment on other oil companies.

[billyjoe]

Just got stopped out of UPL at 40.25 for 15% gain. I would have liked more, but the plan is working. Trailing stop worked well. On to the next pick.

billyjoe

[Runner]

What ya'll think of these charts. Do they have any gas in the tank to move on??

Could this pullback be a buying op?

[dmk112]

Could this pullback be a buying op?

I think there may be more downside to come...its almost identical to the last runup in energy (Jan-March '05) and then it topped and bottomed out in May... So I will wait for the XLE to get closer to the 50dma to buy some..

[New-born baby]

Gasoline anyone

Here's worldwide gas prices for your enjoyment:

[Thomrich]

Greetings,

I think we are getting fairly close to the point where fuel cost shifts economy.With all the SUVs getting 10mpg,sooner or later its got to pinch demand,as folks will either stop driving,or trade for more fuel efficient cars.That has already begun.My friends father owns a car dealer,people are stunned by how little theyre SUV is worth in trade,as the dealer cant get rid of them.Alotof times they tell people to try and sell on there own,which really panics them,thinking theyre stuck with them.The same with sport cars with v-8s,used corvette prices are nosediving.When gas hits 3 bucks I dont want to be the cashier at the minimart.

BTW my new Nissan Sentra gets 31mpg in city driving,best car I ever bought.Cant
wait to see what I get on the highway.

And Id need drugs too If I paid over 6 bucks for gas in Amsterdam.

cordially Tom

[jiesen]

Greetings,

I think we are getting fairly close to the point where fuel cost shifts economy.With all the SUVs getting 10mpg,sooner or later its got to pinch demand,as folks will either stop driving,or trade for more fuel efficient cars.That has already begun.My friends father owns a car dealer,people are stunned by how little theyre SUV is worth in trade,as the dealer cant get rid of them.Alotof times they tell people to try and sell on there own,which really panics them,thinking theyre stuck with them.The same with sport cars with v-8s,used corvette prices are nosediving.When gas hits 3 bucks I dont want to be the cashier at the minimart.

BTW my new Nissan Sentra gets 31mpg in city driving,best car I ever bought.Cant
wait to see what I get on the highway.

And Id need drugs too If I paid over 6 bucks for gas in Amsterdam.

cordially Tom

It's 3 bucks already where I am- and I'm not even in Europe.

[Thomrich]

It's 3 bucks already where I am- and I'm not even in Europe.

Just filled this morning here in Chicago,$2.899 for the cheap stuff.I asked the cashier if flks are pissed,amazingly she told me they just kind of shrug it off.She said she reminded one guy who was a mazed at the price,that he was paying $2.50 for 8 oz. of Red bullwhixh computes to about $20.00 a gallon.

Also saw this morning with fuel this high,Gasoline inventories dropped much more than expected,by about 5million barrels.Looks like 70 a bbl is just around the corner,and if a huuricane disrupts,look for 80.

cordially Tom

[jiesen]

Just filled this morning here in Chicago,$2.899 for the cheap stuff.I asked the cashier if flks are pissed,amazingly she told me they just kind of shrug it off.She said she reminded one guy who was a mazed at the price,that he was paying $2.50 for 8 oz. of Red bullwhixh computes to about $20.00 a gallon.

Also saw this morning with fuel this high,Gasoline inventories dropped much more than expected,by about 5million barrels.Looks like 70 a bbl is just around the corner,and if a huuricane disrupts,look for 80.

cordially Tom

Just imagine, if all these refinery delays, and gasoline inventory numbers, which really have NOTHING to do at all with the supply of crude, can have this sort of impact on the price of crude, what the impact will be when a major pipeline in Iraq or Saudi Arabia blows up. I think someday we'll be looking back and wishing we could get oil for $80/bbl again.

[skiracer]

You really must go to Google and search "Hubberts Curve". About the 3rd or 4th item down is "Hubbert's Curve, It's the oil stupid", which you must read. It's a long read, 13 pages, but you should take the time to read it.
Aside from that this oil situation it definitely going to become a wrench in the spokes of our economic system and well being.