gabe borenstein

Energy Stocks Are Too Cheap to Ignore - Barron's

Oil stocks are done with.By now all of the investment community comprehends that the oil spike was not driven by the geometric explosion in the final demand but rather by a massive bankrupt strategy of long oil short financials .
The unwinding of these positions is not over ande will bankrupt many yet.
The windmill,the nuclear and hydroelectric energy play ,has been mostly exhausted as well.
Even the grain prices had a spike as a result of conversion to ethanol(corn).
To me one very promising source that could allieviate shortage of oil, is the Canadian oil sands.
However ,this sector appears to have been totally ignored.Time will tell.
Many experts claim that it is not the oil shortage that is the problem ,but rather inability of most refineries to "crack"the heavy crude,as the heavy crude is readily available.
I could not help but notice one Canadian company that is working on the oil sand conversion to oil and conversion of the heavy crude to light crude .In addition the company is looking for oil in China and produces small amount of crude.
That type of company (energy) could make a sense but it will not likely make a great move untill it is discovered by some hedge fund By then it is too late.

Summer in the Citi - Fast Money Recap (5/2/08)

Perhaps it is time to focus on the broad market instead of perceived "singular"opportunitie... FED's aggressive easing to date ,will provide a broad market and economic momentum -but we need to allow for the lag.The fiscal stimulus is significant upward momentum enhancer as well .Using a multiplier of seven,the 140 billion dollars "rebate" ,becomes a significant trillion dollars stimulus.Between the two "jolts"and with some more accomodation from the FED ,we are heading for a major rebound. The record leveraged commodity speculation should not be confused with inflation.In real cyclical inflationary environment,the housing prices would be increasing at least with the rate of inflation.
Let's just focus on the broad stock market rebound and not waste time with individual picks .

Sell in May, Go Away - Fast Money Recap (4/30/08)

Quite a few predictions most of them unenthusiastic.From the Macro perspective ,the stock market had performed quite well.For all of the recessionary predictions(not a reality especially if the FED cuts rates 100bps more),the stock market did quite well.Since the FED comprehends that the economy functions well as long as financial insitutions function well ,it became an active participant in the J.P Morgan -Bear merger ,but more importantly it signalled to the markets/investors that no financial institution will be allowed to fail.True,the record open short interest in the market and specifically financial sector is responsible for irrational bearish attitudes.Psychology is not an economic reality.The monetary and fiscal policies in place ,with some further accomodation from the FED (and allowing for the lag)will contribute to a major economic rebound in the period ahead and will contribute to unprecedented rally in the U.S equity markets .The financial sector will lead that rally.Socio/economic events/upheaval in the emerging markets will result in the record demand for dollar denominated assets(U.S markets and real estate).Commodity inflation?there are no signs of demand pull inflation which would be a cause to worry.The cost push inflation that we are witnessing to date ,is a function of a unprecedented leveraged speculation.In order to resolve this phenomenon,all of the relevant exchanges(NYMEX,Comex) should impose a 100% margins on trading and unprecedented price implosion will follow allowing the FED to focus on the real iisues.To the skeptics ,I would like to point out that some 28 years ago Comex imposed 100% margins on the precious metals ,causing the silver to tumble from fifty dollars to six.So much for commodity inflation.Ther issues/problems .I have been warning about since june 2005(Mark Gilbert- Bloomberg interview,Brian Sullivan Bloomberg TV) are behind us..For all of the pessimism the U.S markets and the economy are on the verge of a major rebound.