I don't think anybody can give direct advice without a license. Might be wrong, but I sure wouldn't want to be responsible if it went the other way with somebody else's money.
Some of the opinions in the threads above this one might give a clue when to buy. Look at some of the company's listed and check on the market history back into the 80's to date, and you might see what some of us that have ridden the waves have done.
It will be nowhere like the dotcom fortunes that were made!
Some of the opinions in the threads above this one might give a clue when to buy. Look at some of the company's listed and check on the market history back into the 80's to date, and you might see what some of us that have ridden the waves have done.
It will be nowhere like the dotcom fortunes that were made!
When the company I work for IPOd this summer we were in the mid $20s now this downturn has driven prices into the upper $4s. Ive maxed out my 401k and will again next year. They match dollar for dollar 12%. I'm thinking about pulling some money out of savings and dumping it into some of our stock on my own.
I bought a few hundred shares of SD at 2 hoping to catch a pop in the next month or two. It might go from 3-5 if it doesn't go to 0. Not long after that will be bankruptcy. You start hearing about a spinoff of midstream or other non-E&P functions, you will see them saddle their new company with their bad debt, come out as "new sandridge" then drop the staff and sell themselves with a clean sheet. If it hold without bankruptcy, you might make some cash on the buy out. But they will likely leave that to the spinoff. So what I did is buy SD long after shorting it and I'm hoping for a 4 dollar stock by next march. Double short, double long, and put up an sd shaped solar array and I"ll feel like if just for a fleeting second, the world has balanced.
I'll put to you this way. If I were investing money right this minute I'd buy Continental, Chesapeake and Devon in that order. Continental and Devon are oil plays and Chesapeake is NG.
I'd also look at midstream pipeline companies, they will give you some actual income with their big dividend payments, they are generally far more stable but still have some risk. Do your homework on them and buy a well managed one or two companies with low debt. I have one that's been paying me 25% per year based on the price I paid for it, I'm reinvesting the dividend in it and my initial purchase was 100 shares. I now have almost 150 shares and if I sold it today I'd get 300% of my investment back. Not bad for 8 years or so. Just bear in mind that it could all go to crap, even from this point. Don't put any money in that you can't afford to lose and spread it around.
Edit: Sandridge! I forgot that one. They are so cheap right now it's hard not to buy them, but they have a tougher row to hoe than CHK. If you buy be ready to bail.
Problem with those big dollar/dollar matched in company stock 401k accounts is you are horribly exposed. You can't diversify half your retirement and that means on days like today, your net worth drop hugely. I most definately wouldn't buy MORE of that same stock for even greater exposure. If you want to balance the books with savings, buy another company(ies) preferably in a different sector not so tied to O/G. Or if it's play money, try to pick out some undervalued company down on energy pricing and hold it for a while (takes balls to make this play with money you care about). Not advice, just a description of what I'm doing.
The company match is the only thing that is company stock just because I don't have a choice. The rest is split up so I feel pretty good. Plus I'm only 31. I have a long time to ride the market before I'm ready to retire.
WRONG. Not all company matches are locked in as company stock.
The bottom line with an O&G company is their success with their wells. I've been watching for awhile now the clear leader with drilling technology and innovation is CLR. CHK ain't too shabby and DVN has always been solid. You can sorta tell what some of these comapanies success will be by watching for trust spinoffs and how they do. For whatever reason SD has been on hind tit with this. Their Mississippian trust spinoffs are basically junk status now but their Permian is holding it's own. CHK's Granite Wash isn't much better than SD's Mississippian's but they have so much in land holdings they can drill some good wells and a lot of them.
Another one to buy might be Newfield Exploration based out of Tulsa. I did some work for them in the SCOOP area over two years ago. They beat everybody in there and have been very quietly plugging along ever since. SCOOP is going to possibly be ginormously huge. As in bigger than the Bakken type huge. I also read a write-up just the other day that pretty much put numbers to and agreed with my suspicions about Newfield. If I'm able to keep working I'll likely buy some. To invest look at oil companies that are operating in the Bakken (North Dakota), SCOOP (Oklahoma), Permian, Spraberry, Wolfcamp and Cline formation plays and the Eagle Ford (in Texas). For gas companies and pipeline all the before mentioned areas apply and also the Marcellus in the Appalachian region. Those are the hot ones right now.
Another one to buy might be Newfield Exploration based out of Tulsa. I did some work for them in the SCOOP area over two years ago. They beat everybody in there and have been very quietly plugging along ever since. SCOOP is going to possibly be ginormously huge. As in bigger than the Bakken type huge. I also read a write-up just the other day that pretty much put numbers to and agreed with my suspicions about Newfield. If I'm able to keep working I'll likely buy some. To invest look at oil companies that are operating in the Bakken (North Dakota), SCOOP (Oklahoma), Permian, Spraberry, Wolfcamp and Cline formation plays and the Eagle Ford (in Texas). For gas companies and pipeline all the before mentioned areas apply and also the Marcellus in the Appalachian region. Those are the hot ones right now.
I'm buying these types of stocks for my son's account. I figure we will be go through a couple of cycles or more in the next 18 years.
Remember Warren Buffet said, "Be greedy when others are fearful, and fearful when others are greedy."
I'm no stock guru, but I hit some great licks in the last downturn.
Remember Warren Buffet said, "Be greedy when others are fearful, and fearful when others are greedy."
I'm no stock guru, but I hit some great licks in the last downturn.
