I like Oil

[NW-Bound]

Ya, I havent had one stuck in my forehead yet!

Don't miss what happens to the guy trying to catch the boomerang at 3:57.

 

[Mulligan]

Don't miss what happens to the guy trying to catch the boomerang at 3:57.

That wouldn't be so good either!


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[Dawg52]

An old college buddy of mine worked for CVX for years. Retired in his early 40's. Basically put all his eggs in the stock over the years and still owns it, over 20,000 shares. Doing the math, he is down over $1 mil from his high. He does own a few other stocks, but dividends from CVX is his primary source of income. And he is still buying more shares on the declines. He is not concerned if they cut their dividend as he lives on less than half of the div's he receives.

More than likely he will do fine over time, but not a formula for good sleep. Not for me anyway.........

 

[papadad111]

Got into ERX late on Friday. With any bounce next week, this one should pop and hopefully can book a small gain. Of course the 3x etfs are not ideal to hold beyond a week or two. Here's hoping for a relief rally in the next few days.

 

[soupcxan]

An old college buddy of mine worked for CVX for years. Retired in his early 40's. Basically put all his eggs in the stock over the years and still owns it, over 20,000 shares.

Either he has brass ones or he's not aware that Chevron occupies the former Enron buildings in downtown Houston.

Not that Chevron is a giant scam, but no one should have all their wealth locked up in their employer's stock.

 

[Fermion]

How about SDLP now?

Trading for $9.30 or thereabouts. I think that is like a 25% yield on the dividend.

Anyone thinking of buying a little here? Contracts good until 2017 and later.

 

[ESRwannabe]

How about SDLP now?

Trading for $9.30 or thereabouts. I think that is like a 25% yield on the dividend.

Anyone thinking of buying a little here? Contracts good until 2017 and later.

If I had the money I'd be on it. Sucks being broke all the time. Every time I have money it burns a hole in my pocket.

 

[ESRwannabe]

If I had the money I'd be on it. Sucks being broke all the time. Every time I have money it burns a hole in my pocket.

SDLP yield is 24.41%
P/E is 5.08
forward P/E is 3.4
P/B 1.1
P/S .7
P/CF 1.5

 

[Fermion]

SDLP yield is 24.41%
P/E is 5.08
forward P/E is 3.4
P/B 1.1
P/S .7
P/CF 1.5

Everyone thinks SDLP is the same symbol as SDRL

That must be part of the issue.

 

[ESRwannabe]

Some high yields out there.

T = 5.83
CVX = 5.93
COP = 6.95
RIGP = 15.66
SDLP = 24.65

PFF = 6.26
AMLP = 8.70
REM = 14.65

 

[ESRwannabe]

Everyone thinks SDLP is the same symbol as SDRL

That must be part of the issue.

Probably right. Its like the perfect storm for the oil sector.

 

[Running_Man]

Oil breaks $40 today, interesting to hear of bond issues of oil company's debt dropping to 30 cents on the dollar. Didn't catch the company name but on CNBC they spoke of a multi billion dollar debt offering from an oil company in March that is now trading under 60 cents on the dollar.

XOM is now yielding 4.25% and has finally broken 70.
COP & CVX are continuing to act as the poor stepchildren and as if dividend is going to be cut.
BHP got smashed today dropping over 7 percent as copper and other minerals got crushed in prices.

There is now only 4 months left in 2015 for the Boone Pickens certain move to $70 oil.

 

[Car-Guy]

There is now only 4 months left in 2015 for the Boone Pickens certain move to $70 oil.

I remember reading something like that recently. Doesn't look to promising at this point.

 

[Fermion]

I had budgeted about $6000 a year for diesel for our RV but today at Costco I saw it for $2.45 a gallon. I have essentially reduced our spending by $2000 a year...at a 4% SWR that is like finding $50,000.

 

[Running_Man]

I had budgeted about $6000 a year for diesel for our RV but today at Costco I saw it for $2.45 a gallon. I have essentially reduced our spending by $2000 a year...at a 4% SWR that is like finding $50,000.

If only you could find a forward 30 year contract

 

[Fermion]

If only you could find a forward 30 year contract

Yeah well everyone is talking like oil is going to be under $50 for decades it seems.

Maybe just buy Exxon when it hits $60.

 

[maloney50]

How is the softball pitch


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[Running_Man]

I like how everyone says oil price has to decline because production is going to fall, here is Norway's oil minister making that point:
Norway's Oil Minister Says Crude Price at $40 Can't Last - Bloomberg Business
And here is Norway's 2015 record production up 10% from last year even with reduced demand:
Norway reports increase in net oil production - UPI.com

You can't make this stuff up

 

[nerdyJON]

I like how everyone says oil price has to decline because production is going to fall, here is Norway's oil minister making that point:
Norway's Oil Minister Says Crude Price at $40 Can't Last - Bloomberg Business
And here is Norway's 2015 record production up 10% from last year even with reduced demand:
Norway reports increase in net oil production - UPI.com

You can't make this stuff up

This is the typical Walmart strategy led by OPEC. With other countries getting involved in Oil production, OPEC says great we will make profits minimal (because we have cash reserves) and squeeze everyone else out of production then increase prices again.

Its a classic strategy just executed on the most expensive industry. I can't wait for the December 4th OPEC outlook. That will determine who will chicken out first. Hence why I am staying far away. If someone can explain all the politics behind this one and the rationale then I will be more confident but I think these are macro level strategic political moves.

 

[Fermion]

Now SDLP is $8.65

Is this because RIG eliminated its dividend today?

I need to dig into SDLP more and see how it is structured. My understanding is that it is essentially a holder of contracts on rigs and would have a hard time eliminating the dividend entirely as this money is needed by majority owner SDRL to fund operations.

On the other hand, at $8.65 the yield is 26%, which seems ridiculously high.

 

[ESRwannabe]

Now SDLP is $8.65

Is this because RIG eliminated its dividend today?

I need to dig into SDLP more and see how it is structured. My understanding is that it is essentially a holder of contracts on rigs and would have a hard time eliminating the dividend entirely as this money is needed by majority owner SDRL to fund operations.

On the other hand, at $8.65 the yield is 26%, which seems ridiculously high.

I believe SDLP is required to payout almost everything. I don't think they can cut if they wanted to.

 

[Fermion]

Well, I am in for a trade here at 1000 shares for $8.58, which seems like a bargain price but I have had bargain fruit turn out to be rotten on the underside.

 

[haloFIRE]

Anyone else?

Put in a buy today?

I bought a small piece of BBEP with the thought of not paying any attention to it for at least a year...maybe longer.

 

[Fermion]

Looking to sell my 1000 shares of SDLP today for $1000 more than I bought them for...not sure if it will hit 9.58 though. Maybe I should just be happy with a one day gain of 10%... Edit: Just sold at 9.47. Not quite $1000 but good nuff.

 

[Fermion]

Oops

SDLP up another 15% today to 10.73

And here I was so happy to sell at 9.47 yesterday.

It was an amazing bargain at $8 two days ago.