Tuesday, December 10, 2013

"Why would anybody want to invest in independent oil and gas?"

Glenn Chan:

"Similarities with mining: In both industries, there is a very high degree of uncertainty about the economics of the unextracted resource. This allows promoters to overpromise without getting into trouble with the law. Promoters, brokers, and investment banks are often involved in both industries. The stock promotion dynamics are very similar. It’s almost like they’re the same industry, even though the technology and the commodities are different."


PD said...

totally agree

theyenguy said...

While a stock broker might encourage yield bearing investments such as Energy Producers, XOP, presented in this Finviz Screener, ... http://tinyurl.com/morg7d7 ... Energy Partnerships, AMJ, and North American Energy Partnerships, EMLP, these have topped out in value, when the bond vigilantes began calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013. With the bond vigilantes and currency traders successfully carrying out a war of debt deflation against the world central bankers, one should shun these investments.

The Investor’s Weather Vane ETFs, Call Write Bonds, CWB, has turned lower from its late November, 2013 high; and Volatility ^VIX, ETFs, TVIX, VIXY, VIXM, began trading higher from December 6, 2013; establishing that the long running bull market has turned to a bear market.

The ten ETFs, STPP, HDGE, XVZ, OFF, JGBS, EUO, HYHG, SAGG, SLV, GLD, seen in this Finviz Screener ... http://tinyurl.com/md4c7py ... have bottomed out, and could be used as a basis of margin for a short selling account. I present these in my Stockcharts.com Chartsite ... http://stockcharts.com/public/1270699