Determining fair value is vital when deciding whether a stock is a good buy or not. In the case of energy stocks, there happens to be a yardstick investors can use to bring home market-beating trades time and time again.
We've seen how the U.S. shale oil and gas boom has created a lot of new investing opportunities in the energy sector. As U.S. production soars, however, so do the risks to the infrastructure required to get the oil and gas out of the ground and into people's homes and autos.
Texas has some of the biggest shale oil reserves in the country. And new discoveries in one of those, the Wolfcamp formation, has stunned many energy experts. This shale oil formation is now thought to be the second-largest in the world.
The global oil market in 2013 was dominated by geopolitical disruptions, a huge boom in U.S. domestic production, and double-digit gains for energy investors. As a group, energy stocks rose 18%. And a handful of the quality shares, including several recommended by Dr. Kent Moors, doubled.
Despite the big gains on Wall Street after the Fed announced it would start to taper its stimulus programs in January, the move takes away a big prop to stock prices. Well, most stock prices. Because as the era of cheap money goes away, something very interesting is going to happen with oil...
The first real Washington budget deal in years won't make that much of a difference to most Americans, but for investors it could be a trove of profits. That's because buried in the details of this deal is an extraordinary investment opportunity almost no one else has noticed.
It's time to look at oil stocks to buy as the United States gets ready to surpass the world's biggest oil producers.
Earlier this month, the International Energy Agency (IEA) reported that the United States will jump past both Russia and Saudi Arabia as the world's top oil producer by 2015.
When it comes to natural gas, Russia has had it too good for too long. For years Russian gas companies have forced customers to overpay for product, or in some cases pay for product they didn't even use. But the rapid rise of shale gas production in North America has changed everything. Dr. Kent Moors explains what all this means -
If this is Thursday, it must be...Brazil.
I returned home late last night from Baltimore where we were putting the final touches on one of the best energy investments yet, a huge new precedent-setting play we'll be releasing very shortly.
But my wife Marina and I are now into a very hectic travel schedule.
Oil prices slipped below $93 a barrel Tuesday, continuing a downward trend that started early last month.
Last week, oil prices fell 0.76%, logging a sixth weekly decline, the longest string of losses since 1998. Volume also slid, with futures roughly 41% below the 100-day average.
Hardly anybody is talking about this. The world's two oil benchmarks are moving in opposite directions. The price of crude in New York is going south, while the price in London is heading north. It's a rare disconnect that can lead directly to profits -
The shale oil and gas boom is going global, as we explored Tuesday in Money Morning.
And this means huge profit opportunities for those who know how to invest in this global shale revolution.
From the Editor: In yesterday's members-only message, you got a rare look at Kent's track record and why he averages 55% on every recommendation. Today, Kent recommends a short-term move, based on the latest developments in Syria...
Damascus may have dodged a bullet (or a cruise missile), but nothing else has changed very much. Not in terms of risk.
That explains why the "Syrian Premium" remains. It may be slightly reduced, as you'll see. But it is likely to stay with us even after the threat of a military solution has been averted.
The markets are very complicated at the moment, which is why now's an ideal time to reach into the Money Morning Mailbag and address your concerns.
The goal here is simple: To provide understandable, actionable, and, of course, profitable answers to your thoughtful and extremely insightful questions.
By an apparent agreement to place its chemical weapons under international control, Syria seems to have dodged an imminent American military attack.
Yet even as the world takes a step back from the brink, three critical questions still remain:
1. Will Syrian President Bashar Assad hand over all of his chemical weapons?
2. Will the proposed international control mechanisms satisfy Washington?
3. Will the final result contained in the U.N. report on the chemical weapons use outside of Damascus alter the outcome?
Of course, until the latest news hit, one result had seemed certain: The global oil market was bracing for higher prices. West Texas Intermediate (WTI) closed at a 28-month high on Friday, while Brent crossed the $116 a barrel level.
Following the agreement, that trend has reversed, sending oil prices in both New York and London lower.
But has this crisis really been defused?