Wednesday, May 06, 2015

Oil & Gas: Let the Recovery Begins...

WTIC broke above USD60 yesterday. This signaled the beginning of the recovery for crude oil prices.


Chart 1: WTIC's monthly chart as at May 5, 2015 (Source: investorshub.advfn.com)

I have appended below the 5 stocks that have been recommended as a BUY by both CIMB and Maybank. Out of these 5 stocks, my picks are listed below with their respective entry levels:
1) Perdana (RM1.30)
2) Armada (RM1.20)
3) Dialog (RM1.55)
4) SKPetro (RM2.70)

Chart 2: Perdana's weekly chart as at May 6, 2015_4.15pm (Source: ShareInvestor.com)


Chart 3: Armada's weekly chart as at May 6, 2015_4.15pm (Source: ShareInvestor.com)


Chart 4: Dialog's weekly chart as at May 6, 2015_4.15pm (Source: ShareInvestor.com)


Chart 5: SKPetro's weekly chart as at May 6, 2015_4.15pm (Source: ShareInvestor.com)


Chart 6: UMWOG's weekly chart as at May 6, 2015_4.15pm (Source: ShareInvestor.com)

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Perdana, Armada, Dialog, SKPetro & UMWOG.

2 comments:

cheer said...

How abt the UMWOG and Coastal ?

Alex Lu said...

Hi cheer

I am just confining my list to the stocks that both CIMB & Maybank call a BUY.

Coastal could be a good long-term BUY at RM2.80. I am a bit concern about new businesses for this company since new investment will drop drastically for the next few quarters. Its recent decision to sell off a rig at cost was very telling of the financial strain of its build-to-stock model or its newer build-for-hire business.

I am even more wary about UMWOG because 2 or 3 of its rigs are either lying idle or under maintenance program presently. This could cause a heavy strain on its financial position if it persists for too long.

Then again, the other stocks picked by CIMB & Maybank also have various other concern. I guess this is investment: You are rewarded for taking risk! So take risk, intelligently!!!