Getting out of oil .. now

Definitely time to lose oil stocks if you're still hanging on to them. Among other things, the WTI-Brent spread really sucks ... Immediate/short-term this is big bear territory. 

 

Screen Shot 2018-03-16 at 7.49.41 AM.png

  • Like 1

Share this post


Link to post
Share on other sites

and it's not just the production picture killing inventory. now refiners are even boosting utilization rates ... adding to output. 

Share this post


Link to post
Share on other sites

So wouldn't this be the time to start positions in US Drillers and Service's group? I started looking at NBR after Leon Coopman talked about it on Halftime Report. All time lows around $5.35. Traded at $8.65 in Jan 2018. Now around $7.00. They also started drilling for Aramco.

Would like to hear from you guy's with more info. Thanks

  • Upvote 2

Share this post


Link to post
Share on other sites

(edited)

I don't think the drillers are going anywhere soon. Not the play I would make. I think NBR is a good day-trade but wouldn't hold it for the long term. This morning would have been a good set-up for instance. It's up almost 4% this morning. 

Edited by TraderTate
  • Like 1

Share this post


Link to post
Share on other sites

Check out the chart on PES also.

 

  • Upvote 1

Share this post


Link to post
Share on other sites

2 hours ago, MJL said:

I'm gonna go out on a limb here. I think NBR could hit $12.00 by year end.

And PES, $5.50

 

 

Quote

 

 

Share this post


Link to post
Share on other sites

PES doesn't have volume though, so for me--not in play today. I won't tough anything without 1 mil volume otherwise I'll get stuck. 

Share this post


Link to post
Share on other sites

Would be interested to hear your rationale for a $12 price target on NBR though. I have to looked in the stated Aramco drilling a bit more

Share this post


Link to post
Share on other sites

NBR is the the largest driller in U.S. Signed huge contract with ARAMCO and already started work to do all their drilling in U.S. and Saudi Arabia. Oil should start to move up after refinery maintenance ends in March and they switch to summer grade. Many analyst believe this will be a breakout year for oil due to global growth and say were in a "once in a decade move for oil". I'm just putting this together with the technicals. It has a great looking chart and just started the Golden Cross. If we are in for a 3 to 4 yr run it could do $30 by then.

Interested in hearing anything you turn up. Happy Trading

  • Upvote 1

Share this post


Link to post
Share on other sites

I'm interested in their 50/50 JV with Aramco, definitely. but also still not sold on this being a long-term play. maybe longer term, ok, I guess it's the medium term I'm not sold on. Would have been great if Aramco went with the IPO, right? I see it's solid as far as drilling contracts of course. I'm thinking more macro here. 

I'm not great on the technicals, so welcome anything you have to share. 

  • Like 1

Share this post


Link to post
Share on other sites

Even if it trades past Jan high $8.65,it could see $9.63 by June -July. 

Keeping fingers crossed

  • Like 1

Share this post


Link to post
Share on other sites

54 minutes ago, MJL said:

Even if it trades past Jan high $8.65,it could see $9.63 by June -July. 

Keeping fingers crossed

Can you post the PES chart here so we can have a look?

Share this post


Link to post
Share on other sites

Go to nasdaq.com . Then interactive charts. Today it broke out from a Wedge, Flat top at 3.20 and rising low's.

  • Like 1

Share this post


Link to post
Share on other sites

Go to nasdaq.com . Then interactive charts. Today it broke out from a Wedge, Flat top at 3.20 and rising low's.

sc?s=PES&p=D&b=5&g=0&i=t78291022308&r=1521651816503

  • Like 1
  • Upvote 1

Share this post


Link to post
Share on other sites

Go to nasdaq.com . Then interactive charts. Today it broke out from a Wedge, Flat top at 3.20 and rising low's.

sc?s=PES&p=D&b=5&g=0&i=t78291022308&r=1521651816503

Share this post


Link to post
Share on other sites

(edited)

Closed @ 3.25 near high for day.

Almost double the 10 day ave. volume today. Looking good.

Edited by MJL

Share this post


Link to post
Share on other sites

4 hours ago, TraderTate said:

PES doesn't have volume though, so for me--not in play today. I won't tough anything without 1 mil volume otherwise I'll get stuck. 

Why not look at a company like HCLP then? They are frac-sand play that has been executing well over the last 12 months including hedging their bets a bit with increased rail traffic and congestion to get their high-quality Wisconsin frac-sand delivered by investing directly in a permian facility. The company recently reinstated their dividend in q4 of last year at .$15 and bumped it up to .$20 in Jan with indications from their earnings report for Q1 that they plan on increasing it 10% per quarter for the foreseeable future. Buyback plan in place and the quantity of frac-sand being used is increasing, both from bringing more wells online, but also drilling longer laterals which then requires more sand per well. Transportation issues getting enough sand to market has caused an increase in the price of sand as well. 

  • Like 1

Share this post


Link to post
Share on other sites

Natural Gas Price 1-Day
% Chg
1 Mo.
% Chg
Henry Hub Front Mo. 2.64 TT-uparrw.png 0.15% TT-uparrw.png 1.0%
12-Mo. Strip 2.84 TT-dwnarrw.png 0.70% TT-uparrw.png 1.1%
24-Mo. Strip 2.74 TT-dwnarrw.png 0.62% TT-dwnarrw.png 1.2%
36-Mo. Strip 2.76 TT-dwnarrw.png 0.22% TT-dwnarrw.png 0.9%
48-Mo. Strip 2.81 TT-dwnarrw.png 0.39% TT-dwnarrw.png 1.0%

Leaders

Company Name Price Daily Change % Change
New Source Energy Partners 0.06 TT-uparrw.png 0.01 TT-uparrw.png 20.00%
Whiting Petroleum Corp. 33.61 TT-uparrw.png 2.95 TT-uparrw.png 9.62%
Diamond Offshore 16.13 TT-uparrw.png 1.26 TT-uparrw.png 8.47%
Pioneer Energy Services Corp Common Stk 3.25 TT-uparrw.png 0.25 TT-uparrw.png 8.33%
Rex Energy Corp. 0.95 TT-uparrw.png 0.0731 TT-uparrw.png 8.31%
  • Like 1
  • Upvote 1

Share this post


Link to post
Share on other sites

$HCLP is a good one ... looks like a good medium-term future for frac sand buybacks, and Hi-Crush crushed it yesterday up over 4.6%

15 hours ago, djohnson1969 said:

Why not look at a company like HCLP then? They are frac-sand play that has been executing well over the last 12 months including hedging their bets a bit with increased rail traffic and congestion to get their high-quality Wisconsin frac-sand delivered by investing directly in a permian facility. The company recently reinstated their dividend in q4 of last year at .$15 and bumped it up to .$20 in Jan with indications from their earnings report for Q1 that they plan on increasing it 10% per quarter for the foreseeable future. Buyback plan in place and the quantity of frac-sand being used is increasing, both from bringing more wells online, but also drilling longer laterals which then requires more sand per well. Transportation issues getting enough sand to market has caused an increase in the price of sand as well. 

 

Share this post


Link to post
Share on other sites

Looking into it.

  • Like 1

Share this post


Link to post
Share on other sites