Friday, March 13, 2015

Looking Offshore for Opportunities


The fall in oil prices was the hot topic at the end of 2014 and even the very beginning of 2015 when we were hitting the lows of $44 at the end of January.

Now we are all of $3 higher from that low, yet as the Motley Fool points out, all interests has died out.

I am continuing my search for good plays to take advantage on the recovery in Oil, which I reckon might bottom out sometime in May or a few months after. Bottoming out doesn't mean a strong rebound though. I actually hold the pessimistic view that Oil will continue to flop around and stay in the sub $60 range for a while (next 2 years).

Personally, I think my analysis of specific companies is horrible. Micro issues about this segment doing this, that segment doing that, it's all in one ear and out the other for me. I don't have the time and energy to analyse each stock I own in such depth, but that's the shortcomings of my methods that I use. Rather than bet on the 1 star company in 1 sector to bring in the mother load, I rather bet on the improvements of the sector as a whole and own a few good companies. That makes it easier for me to manage my risks from individual companies, but yet still benefit from specific macro factors that I have analysed.

This report by Maybank Kim Eng touches on a few of the individual names that I have shortlisted, so just thought I'd share the report to those who might be interested in such a play in the future.

My list of stocks is still long and I haven't had the time to start cutting them down yet. Perhaps this weekend I can start throwing out the obvious companies and make some headway in this area. May is coming in less than 2 months.

So many things to do, so little time to do them!

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