It's true that a swing-for-the-fences approach is a very risky way to
invest. When you find such golden opportunities, you should always make
a modest investment. Any stocks with potentially robust upside usually
often possess a lot of downside risk as well.
Yet there are ways to mitigate risk when pursuing stocks with high
upside. If they already sport low valuations, or if they have very
strong balance sheets, they likely have limited downside. In effect,
such stocks already reflect ample negative sentiment, and with a few
helpful catalysts, can quickly move back into favor. (more)
Wednesday, September 9, 2015
One of the Best Opportunities When the Market Recovers
It’s a scary time to buy stocks…
Markets around the world are breaking down. But as we’ve written recently (here and here), this volatility is likely overdone. And it’s creating real opportunities.
Most investors are focused on the U.S. today. But one of the biggest opportunities isn’t at home… It’s in Europe.
Let me explain…(more)
Markets around the world are breaking down. But as we’ve written recently (here and here), this volatility is likely overdone. And it’s creating real opportunities.
Most investors are focused on the U.S. today. But one of the biggest opportunities isn’t at home… It’s in Europe.
Let me explain…(more)
Oasis Petroleum Inc. (NYSE: OAS)
Oasis Petroleum Inc., an independent exploration and production
company, focuses on the acquisition and development of unconventional
oil and natural gas resources in the North Dakota and Montana regions of
the Williston Basin. The company’s principal projects are located in
West Williston and East Nesson. As of December 31, 2014, it had 505,503
net leasehold acres in the Williston Basin; and approximately 272.1
million barrels of oil equivalent of estimated net proved reserves. The
company sells its oil and natural gas to refiners, marketers, and other
purchasers that have access to pipeline and rail facilities.
Take a look at the 1-year chart of Oasis (NYSE: OAS) below with added notations:
After a persistent selloff in June and July, OAS has started trading sideways over the past month. While in the sideways move, the stock has formed a key pair of price levels that are worth watching. OAS has a resistance at $12 (red), which was also support earlier in the year, and an $8 support (green). At some point one of those levels will have to break.
The Tale of the Tape: OAS is trading inside a trading range. The possible long positions on the stock would be either on a pullback to $8 or on a breakout above $12. The ideal short opportunity would be on a break below $8.
Take a look at the 1-year chart of Oasis (NYSE: OAS) below with added notations:
After a persistent selloff in June and July, OAS has started trading sideways over the past month. While in the sideways move, the stock has formed a key pair of price levels that are worth watching. OAS has a resistance at $12 (red), which was also support earlier in the year, and an $8 support (green). At some point one of those levels will have to break.
The Tale of the Tape: OAS is trading inside a trading range. The possible long positions on the stock would be either on a pullback to $8 or on a breakout above $12. The ideal short opportunity would be on a break below $8.
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