Quote:
Originally Posted by pikeman06
Hey Dean don't catch a falling knife. Remember? Oil n gas are done. I guess even the "smartest" of us fall victim to media hype every so often eh? Energy is what drives the world, pick some form of energy and invest and you will get a gain sooner or later people. It all has its place, and will till the end of mankind.
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I said it and it was correct at the time. Never buy stuff on the way down. That is still good advice. Wait till you are darn sure it has bottomed. Guys that bought Whitecap at 7 after it had been at 20 thought it was a deal but the trend was still down. It bottomed around 2. If they bought at 7 and held, they are at least back even, if they bought at 15 they still have a long ways to go. Vermilion had been over 40, everyone on bnn thought it was a great deal at 20, it bottomed below 3. That is a falling knife. Once it recovered to around 4 with improving oil prices and demand it is time to buy. If u look at where it is today it was a money making buy. Same for ensign, was over 9 dropped to 4, heck of a deal, bottomed below 50 cents. Once it recovers to 80 cents with an upward trend time to move. All that said, these are all short term trades. None of these fit into longterm buy and hold portfolios. Oil and gas will be around for decades yet but it is so reviled that big money is less and less interested. You can make money playing the swings but the long term trend for these stocks is down.
The pipelines will follow the same trajectory. They have been a great investment for 70 years but like Kodak, the future is swinging against them. Time to find another asset class with long term growth and good dividends to start moving that money into over the next 10 years.
If you read just what I have written over the course of this thread you will find my views remain consistent, which isn't surprising since it is the same perspective I have had for over 30 years.