Blueknight

Is It Safe?

Any thoughts on when the energy trusts like pwe, pbt, etc are right to buy. The divs are great and nat. gas is not going out of style any time soon. Deflation fears and falling demand are cons, I know, but at these prices they are tempting

Is It Safe?

Yank.....astute observation...logicall... there should be a great trade on RIG in here. My experience, sadly, is that being right does not always make you money...the trick is knowing what the market will do before it reacts. Then there is the OBamma factor which also hurts prospects here.


On Oct 15 10:02 AM yank wrote:

> Shiv:
> I generally agree with everything you said except for the RIG comments.
> If you look at RIGs valuation with a PEG of 0.4 and other metrics,
> it suggests a forward oil price of $25-30. Is that realistic? I don't
> think so. In all the hysteria this week about oil demand destruction
> the news out of China yesterday went completely unnoticed. They imported
> a record 20 million tons of oil in September, a 10% increase yoy.
> So much for demand destruction. RIG is basically being given away
> at these price levels. The full value of this stock is around $160,
> making it a "double from here.
>
> Newby