Contrarian Stock Market Investing News - Featuring Bargain Stocks » Transocean

Oil Service Companies Doing Well…

Byron King — Thu, 29 May 2008 14:14:03 +0000

Out in the field, the industry players are doing real work.Wow. Transocean drills over 40,000 feet (directional).

New world record, for both longest well bore and extended reach.

As the Senators insulted the oil executives, I was wondering if the politicians would prefer to trade managements with the National Oil Companies of other countries. Would you trade the guys who run Exxon for the guys who run Pemex? How about trading the Chevron leadership for the fine people at Petroleos de Venezuela (PdVSA)?

BWK

Source: Oil Service Companies Doing Well…

A Giant Wave Of Money Is Headed Toward This Industry

Brian Hunt — Thu, 22 May 2008 13:23:34 +0000

Once in a great while, a sector trend becomes so strong, the rising tide lifts every boat in the industry.

In the industry that sells transport, drilling, and pumping services to Big Oil, the rising tide is more of a 130-foot wave crashing onto shore. In other words, you could close your eyes, buy almost any oil-service stock right now, and come out ahead this year.

One of Market Notes‘ frequent guests, Transocean, is up 53% in the past year. It’s the world’s largest drill-ship operator. You find similar gains in CHC Helicopter (transport), Cameron (valves), Tenaris (drill steel), FMC (wells and transport systems), Nabors (drilling), National Oilwell Varco (drill rigs), Weatherford (drilling systems), and… well… we’ve run out of space.

No doubt this market is frothy… but for those speculating in 2008, keep this in mind: Skyrocketing oil prices are filling the pockets of Russia, Saudi Arabia, Canada, Norway, and Brazil right now. They’ll have to spend that cash to find more oil… and that 130-foot wave will continue pushing money into oil services.

Source: A Giant Wave Of Money Is Headed Toward This Industry

The Best Way to Lose Money in Stocks Right Now

Brian Hunt — Wed, 09 Apr 2008 14:11:24 +0000

After a long search yesterday, your editor in chief found the No. 1 way to lose money in stocks right now: betting against oil. The past few years have seen the rise of ETFs that allow speculators to make bets against sectors like energy, technology, and financials.

A recent entry to the game is the UltraShort Oil & Gas ProShares (DUG).

ProShares introduced this “inverse fund” in February 2007. It makes big money when oil stocks fall and loses big money when oil stocks rise. Since inception, this bet against ExxonMobil, Transocean, and Schlumberger has plummeted. The current rally in all things related to has sent the fund to an all-time low.

All assets boom and bust, so we’re sure this fund will be a winner someday. For now though, DUG is getting battered the old fashioned way: going against the trend… in this case, the trend of record cash flows moving toward the companies that dig, drill, refine, and transport fossil fuels. Take that, tree huggers.