Journey Energy: Too High Cost For Me (Rating Downgrade)

Summary

  • Journey Energy is a small-cap producer not excelling in its sector.
  • Current trade wars, tariffs, and bearish economic signals threaten high-cost producers like Journey Energy.
  • Business uncertainty and declining consumer sentiment suggest a recession is likely. It could be worse, as many economic indicators are still falling.
  • In this environment, preserving capital and avoiding speculative small caps like JRNGF is the prudent approach for investors.
  • The partnership with Spartan Energy is a bright spot. But it is not yet significant enough to make this an investment consideration.

Staked red oil barrels against cloudy sky.

Torsten Asmus

Journey Energy (OTCQX:JRNGF) is a smaller cap producer that appears not to be leading in any categories in which it does business. With the current threat of tariffs and trade wars, a small company like this is unlikely to

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Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA.

He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in DALXF over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: I am not an investment advisor, and this article is not meant to be a recommendation of the purchase or sale of stock. Investors are advised to review all company documents and press releases to see if the company fits their own investment qualifications.

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