Oil stocks?

[ripvanwinkle]

Our company has had a good year. (A little birdie told me we will be getting a bonus. )  I'll have some extra cash to invest. With oil prices down again I was wondering if it would be a good a good time to possibly buy some oil stocks or etf's. Any thoughts or suggestions?

Again, just wondering.

[The Virginian]

I like the refineries (small) - CVRR & ALDW. Pipelines - ETP, PAA, KMI (All beaten down) (PAA might have to cut dividend so keep a close eye on it and buy after the cut if so inclined) And of course I like COP, CVX, XOM, . NGL is a another good one to consider and as of yesterday its dividend hit 26% - They have frozen the dividend for 2016 but I can live with a frozen 26% dividend !

Another one that has been beaten down but is a good positioned company (IMO) is ARLP (Coal). I have been buying these in $2000 lots so as to limit my exposure to any single stock but I still get the advantage of great dividends and a huge potential for equity appreciation when the oil prices recover in a year or two. Even KMI with it's recent 75% dividend cut still yields a solid 3% Dividend. Now it is positioned to be a growth stock with a dividend in line with the Blue Chips.

The whole segment is with risk but the potential for spectacular returns far outweighs the risk in my opinion.

Most of these ridiculous dividends would be more realistic if the industry wasn't out of favor right now, in other words they are "accidental high yielders" the kind I am looking for.

[ripvanwinkle]

Thanks. I'll take a look at those. I'm not a "experienced" investor. Nickel and dime type investor. I might buy 10-20 shares of something maybe twice a year when I have some extra money.

Is there a particular item in these stocks I should scrutinize closely to compare to each other? You know, any red flags?

Also, what about oil transport companies? Ships, rail etc?

[The Virginian]

If you want to play it safe then go with big oil : COP, CVX, XOM

If you want to go for yield I like CVRR & ALDW.

I personally like ARLP ( a coal producer) out of favor because of the push to eliminate oil but ARLP is the King and will benefit from others that might go under, great play but definitely a risky one. My opinion - Coal will still be around for many years to come, similar to the tobacco companies that people thought were done for.

If you really want to go for broke consider SXCP - A coke producer that provides coke for US Steel and exports. It has a yield of over 40% right now because US Steel temporarily suspended production but SXCP has a long term contract with them so they should still get paid even when not delivering Coke.

I'm not much of a researcher but I do just read others articles on what they think and I look at the fundamentals on FINIZ.

PE ratios, Their buy sell score ( Lower left - the lower the better - if positive it will be in Green) Basically I just want to know the business is viable and not in danger of bankruptcy

[ripvanwinkle]

What about oil transporting. Oil tankers? Rail? Do you get into those?

[The Virginian]

Dec 12, 2015 18:24:54 GMT -5 ripvanwinkle said:

What about oil transporting. Oil tankers? Rail? Do you get into those?

No, Rail I find boring and the maritime I haven't looked into yet. I did own Teekay Tankers for a short time but sold it, since then I have not looked into it. Most are foreign stocks that I try to avoid. I prefer US equities.

[Artemis Windsong]

Thanks for the tip on NGL.  I got 200 shares yesterday.  Maybe more later.  Already made a profit. 

[The Virginian]

Dec 15, 2015 17:31:40 GMT -5 Artemis Windsong said:

Thanks for the tip on NGL.  I got 200 shares yesterday.  Maybe more later.  Already made a profit. 

Yes, I picked up 233 Shares @ $8.51. You now have about a 30% Dividend locked in ! That is incredible to me. A little risky but I am holding for the Dividend 

They are basically middle men in the oil industry - NGL Energy Partners LP is a limited partnership company that is a vertically-integrated service provider. The Company operates through the following segments: Crude oil logistics, which purchases crude oil from producers and transports it for resale at owned and leased pipeline injection stations, storage terminals, barge loading facilities, rail facilities, refineries and other trade hubs; the water solutions segment, which includes water treatment and disposal facilities; the liquids segment, which purchases propane, butane and other products from refiners, processing plants, producers and other parties, and sells the products to retailers, refiners, petrochemical plants and other participants in the wholesale markets; the retail propane segment, which is engaged in the retail marketing, sale and distribution of propane and distillates; the refined products and renewables segment, which conducts gasoline, diesel, ethanol and biodiesel marketing operations, and corporate and other.

I am definitely going to DRIP the shares but might add a few more shares here and there. Good Luck !

[Artemis Windsong]

Thanks.  I don't know how to DRIP my shares with TD Ameritrade. 

I usually have some risky stocks.  I love the divi on NGL.  I swooned when I read your post.  I just need to watch next fall for their 2017 divi projection.

I'll keep looking at SXCP.  Good price for me.  Swoon on divi.

I really appreciate the tip. 

ETA:  I tried the find FINIZ and came up with buy the domain name. 

[The Virginian]

Hi Artemis , It's FinViz, here's a link. www.finviz.com/

PS: Also might want to look at UAN ( www.finviz.com/quote.ashx?t=uan )


I don't use TD Ameritrade I use Schwab but I am sure it is similar. There is a box that you can check or uncheck to start dripping your dividends into new shares. It is listed in a column next to that particular security.

[Ombud]

The Virginian, are you talking about selecting dividend & capital gains reinvestment option when entering buy order?

[Deleted]

Artemis Windsong

When you are signed into your TD account online, hover over the MY ACCOUNT tab; when the menu drops down, go to the bottom of it where it says DIVIDEND REINVESTMENT: Click there and it will take you to a page that explains the process.

Alternately; you can call TD and speak with a Representative, explain what you want to do and they can assist you.

[The Virginian]

Dec 16, 2015 12:15:23 GMT -5 Ombud said:

The Virginian , are you talking about selecting dividend & capital gains reinvestment option when entering buy order?

Yes Ombud, In Schwab beside each equity there is a box that has the option to reinvest your dividends and you can simply check yes or no and you can turn it own or off as you need. Most of my stocks I choose to reinvest the dividends but sometimes I just take it as cash to reinvest elsewhere. A great feature that makes life simple.

[Artemis Windsong]

Dec 16, 2015 12:27:07 GMT -5 @di said:

Artemis Windsong

When you are signed into your TD account online, hover over the MY ACCOUNT tab; when the menu drops down, go to the bottom of it where it says DIVIDEND REINVESTMENT: Click there and it will take you to a page that explains the process.

Alternately; you can call TD and speak with a Representative, explain what you want to do and they can assist you.

Got r' done.  All positions dripping.

Also looked at FinViz.

Put in an order for 200 sh SXCP @ $5.20.  We'll see if it fills.

How do you track your stocks?  spreadsheet?
How do you decide when to sell?

[The Virginian]

Dec 16, 2015 20:14:34 GMT -5 Artemis Windsong said:

Dec 16, 2015 12:27:07 GMT -5 @di said:

Artemis Windsong

When you are signed into your TD account online, hover over the MY ACCOUNT tab; when the menu drops down, go to the bottom of it where it says DIVIDEND REINVESTMENT: Click there and it will take you to a page that explains the process.

Alternately; you can call TD and speak with a Representative, explain what you want to do and they can assist you.

Got r' done.  All positions dripping.

Also looked at FinViz.

Put in an order for 200 sh SXCP @ $5.20.  We'll see if it fills.

How do you track your stocks?  spreadsheet?
How do you decide when to sell?

I invest for Dividend Income so I mainly buy and rarely sell. Mod has an interesting method, he buys and holds until the stock price rises enough to cover six months of dividends. Here is a link to his post on the dividend thread. I'm sure he would be glad to explain it in more detail to you :   ymam.proboards.com/post/2371111/thread

[The Virginian]

As far as a spread sheet no, I track all of them manually through a Word document that I manually enter all the changes. It's getting difficult though as I am approaching 50 stock positions. If anyone knows of a good stock tracking program that can be customized I would certainly like to here about it.

[The Virginian]

Hey artemis, You need to cancel your limit order for SXCP : They are suspending their Dividend : SunCoke Energy Suspends Quarterly Dividend - Quick Facts - www.nasdaq.com/article/suncoke-energy-suspends-quarterly-dividend--quick-facts-20151217-00185    

[The Virginian]

Well it turns out I was wrong Artemis, If your order got filled you made about $1.50 a share today. not bad.

[Bluerobin]

Dec 12, 2015 18:24:54 GMT -5 ripvanwinkle said:

What about oil transporting. Oil tankers? Rail? Do you get into those?

I have been in and out of NAT, Nordic American Tanker.  Good dividend.  Right now, I am not holding. 

[Artemis Windsong]

Dec 17, 2015 13:40:16 GMT -5 The Virginian said:

Well it turns out I was wrong Artemis, If your order got filled you made about $1.50 a share today. not bad.

The low was $5.25 I had the limit at $5.20.  Oh well.  Maybe I missed a bullet after the comment on the dividends being suspended. 

My methods is paper and pencil.

I don't track real closely.  I missed getting out on the REITS so I'm showing a significant loss.  They still have nice dividends.

[tyfighter3]

JMO, Keep your powder dry until OIL bottoms out. There will be plenty of upside and dividends to be made from there.

[tyfighter3]

Here's the reason.

www.marketwatch.com/story/oil-stocks-will-get-worse-before-they-get-better-2015-12-17

[The Virginian]

Dec 22, 2015 14:09:31 GMT -5 tyfighter3 said:

Here's the reason.

www.marketwatch.com/story/oil-stocks-will-get-worse-before-they-get-better-2015-12-17

I agree - But it is very hard to actually see a bottom because it can literally turn around in a day when the Big Boys swoop in. That's why I am buying slowly now on the way down. If I wait and am too greedy I might lose out. Oil prices are the lowest in 11 years so I don't think I'll lose out too much. But.... A few more could go bankrupt or cut dividends which would depress the stock prices even further so I am taking a risk. Trying to have some cash on hand just in case it drops down even more. Who knows - buy on margin if it does fall apart? 

[Deleted]

If you are looking to speculate as to whether Oil stocks are going to recover anytime soon; then the cheaper way to go would be to do thus via Options.

Locate the Longest Dated Expiries; and then BUY At The Money PUTS and At The Money Calls.

Thinking is that, in this way IF a Target (Underlying) FALLS in price, profit can be made on the PUT side, which would get more expensive as the stock falls (Ergo, if you bought the PUT, this would allow for you to SELL TO CLOSE at a higher price; thus profit).

The same is true on the CALL side, as if the target rises in price, then CALL gets more expensive, which then would show profit.

Additionally, proceeding in this way would be cheaper than actually buying 100 shares of a target (in most all cases), provides indirect exposure and allows for speculation as to directionality; yet limits the amount of actual Capital at risk.

[Ombud]

Now that the Saudis are hurting, I need to buy oil ASAP. Suggestions other than VLO?

[Deleted]

Could play the Europe angle with: RDS.A & BP

Also could peruse the U.S. Majors: XOM, COP, CVX, PSX

Many, many possibilities in the sector. However, be wary as it is widely thought that about 50% or more of the companies in the energy sector could end up filing for bankruptcy in 2016; so still dangerous ground to try and set foot on. 

[tyfighter3]

DI has it right about the US Majors. They will be the ones that will buy their growth for the next few years.

[Deleted]

The thing to watch for, aside from further gain to Oil Stockpiles; is the continued pressure on the Dividends these pay.

Granted, they are considered sacrosanct; but at some point the need to preserve capital could become far to great to protect the Dividends.

At that point, current pain could end up looking pleasant; in the face of the bloodbath any Dividend cuts by Oil Companies could unleash.

[Artemis Windsong]

Kaching!  NGL is $11.06.

Thanks Rip.