How do you rate an Oil and gas company whether or not it is profitable, and whether or not investors should buy in?
CashCowMoo
posted
id look at a lot of things that are not directly related to the market like lame o charts. you have to understand petroleum geology to get a good feel for them
Machiavelli
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I really dont care about their fundamentals and such... im strictly a chartist/TA trader... if i see a buy signal or trend reversal i act accordingly... you really dont need to be a expert in a companie's products or industry to profit in the trading game... learn Technical Analysis and you should win in the long run.. remember were traders not investors... unless long term investing is your objective... i rather stick to short term trading...
Treemoney
posted
with any company including oil companies there earnings reports should say whether or not they are profitable or how much there loss was. If you are also asking what those oil company prs mean when they give all those measurments I dont have a clue either. Just my opinion, but unless you are going to daytrade or swingtrade, oil is no longer the great sector it was a couple months ago. Unless they start signifigantly raising the price per barrel again there isnt much to gain.
servant_350
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how u know the trend reversal? .... it's really hard to predict ...i read alot and still didn't get confident about it
Treemoney
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if you are reffering to my post Im not predicting anything but only pointing out what has already occurred. Over the last four or five months or maybe longer energy stocks were on fire. some were going up 15 to 20 percent a month. Ngs in a one months time span almost doubled if my memory was correct. They all hit a top on around the same day and have regressed some and some have been flat and some like ngs have droped fast and are still droping. Everyone keeps saying natural gas stocks will go up this winter and maybe they are right but I doubt it. The stock market is anticipatory and they have already gone up all they will in my opinion. Ironically in the stock market often major bottoms are at the release of really bad news and major tops are when everyone thinks the stock will go to the moon. Ngs was a classic market top for a stock. It looks just like the nasdak did in 2000 before it droped. It was going up so fast it was just a matter of time till it dropped. This is the same as the chart looked in the 1929 crash. When a chart gets to steep im not saying it will always drop but just be carefull. Another thing to keep in mind is when everyone wants energy stocks and buying it can be a signal the stock will drop soon. Why? Because those people who bought six months ago are watching there already huge profit get bigger and are afraid of loosing it. They own more shares then the later buyers because they bought it so cheap so usually this is why sellers will prevail over buyers even though market sentiment may be at an all time high because they own more shares. You can also draw divergences and 52 week highs and lows to help indicate market tops but someone else would be better able to explain since I dont do it although it is in my opinion the best way to spot market tops. Justin Mamis goes over this in his book when to sell stocks which is a pretty good book. I dont know why im rambling on about this. Oh well.
BuyTex
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basically--as I read it-- TREE and MACH are in agreement: OIL ain't that great a play, right now...
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