yank

Energy: A Value Trap - Merrill

We are going to take "value" advice from a company (Merrill) that pushed itself to the brink of bankruptcy? Don't think so. Let us all remember that it was Merrill Lynch that:

1. Closed up its commodity trading in 2001 (right before commodities exploded higher by triple digits).
2. Recommended selling all precious metals positions in 2002 (right before gold/silver took off on a 200% gain).
3. Predicted in 2002 that oil would remain cheap in the $20 range for the indefinite future.

So, you want me to believe anything that Merrill Lynch has to say? If anything is a "value trap" today it is the BROKERS. Operating with a flawed business model, undercapitallized, and with mistrust of their financial reporting, brokers are a trap that all investors should avoid for the foreseeable future.
Unlike the brokers, the oil companies actually produce something of value that is needed by this society. Quite simply oil companies and others in the energy complex are currently priced as if they were going bankrupt. I hate to break it to you but XOM, CVX, and OXY are not going bankrupt anytime soon. But Merrill Lynch, that's another story..............