January 21st, 2014
As every savvy investor knows, multiples are one of the best yardsticks when it comes to finding undervalued stocks.
More often than not, that involves a hard look at the multiple of a company’s earnings to determine whether or not a stock is fairly valued.
January 16th, 2014
Today, I want to talk about to you about a new investment opportunity.
It’s in energy security, and I have two money-making ways for you to play this trend.
It stems from the accelerating need to protect the production, transport, and distribution of our newfound wealth in oil and gas.
This point was hammered home yesterday with the release of Oil Security 2025: U.S. National Security Policy in an Era of Domestic Oil Abundance.
The 108-page report is the inaugural effort of the Commission on Energy and Geopolitics. Admiral Dennis Blair, former Director of National Intelligence and Commander in Chief, U.S. Pacific Command; and General Michael W. Hagee, 33rd Commandant of the U.S. Marine Corps, served as co-chairs.
Not surprisingly, the report reflects matters I have discussed before.
They include: the rise of security issues surrounding new domestic oil finds, increasing geopolitical tensions and the changes in the energy balance, both from a supply and a demand perspective.
In this case, the transition of supply from conventional to unconventional sources, combined with a new emphasis on domestic U.S. production, certainly has both global and security considerations.
But it’s the changes on the demand side that are even more striking…
January 23rd, 2012
Two major events rocked the oil and gas sector this morning.
But they weren’t tied to ubiquitous market volatility or natural disasters.
These were intentional – each a result of human decisions.
Whatever the cause, the result is that we are we are off to the races… and you and I have the opportunity to benefit nicely.
The Embargo Has Begun
First, the European Union (EU) in Brussels passed its anticipated oil embargo against Iran.
The EU also froze assets of the Iranian central bank in Europe. I have recently commented on what this action would mean to the oil markets, even if Tehran does not make good on its threat to close the strategic Strait of Hormuz.
Closing the strait, even for a short time, would lead to the quickest rise in oil prices on record.
But the likelihood of that taking place is uncertain. Iran, after all, gains 80% of its income from oil exports. They would experience a steep financial cut by their own hand.
More certain now are the major crude oil pricing issues that would result from withholding Iranian crude from the European market.
And that one will be happening.