ChuckieEgg wrote: »
My main thinking is that the demand for Oil is going to return. The dividend payouts from these companies is now very high. XOM is yielding close to 10%. So if the dividend doesn't get cut and the Oil price rises in the future then so will the share price of these companies.
So in short I looking at dividend and price appreciation.
I don't know anything really about Bonds
ChuckieEgg wrote: »
Long term 3 to 5 years. If XOM returns to 2019 price levels then I'm at close to 100% ROI
Providence Resources is only a Junior, it needs the majors to recover first. I don't see the need to be involved in risky Junior explorers when the majors are at current share prices
ChuckieEgg wrote: »
I don't know much about Providence but I think it is a different kind of play which could work out very well for you
Jimbobjoeyman wrote: »
Whats the thought process when adding them ?
Also high dividend yields are usually there to make up for lackluster performance or poor growth ie. Aviva or altria etc so I'd be careful chasing income.
A high yield US bond ETF would be a better shout if your after income with an average cupon of about 6-8%.
You've the diversification benefit of the ETF and the FED has effectively propped up the US bond market so your not taking on anywhere near as much risk.
Kilboor wrote: »
I take the higher risk approaches so Providence for me is a no brainer. I'm already up 30-40% in 3 months or so and can see huge upside over the next two months
Mickiemcfist wrote: »
Why the next 2 months out of interest?
RaggyDays wrote: »
Nice returns so far, did Exon cut the dividend or did they pay out?
Bawa wrote: »
I'm guessing you did very well after you bought these since these energy stocks skyrocketed back in November. I'm a big energy guy myself. I backed up the truck in the middle of last year.
Chuckie_Egg wrote: »
Yes a great return so far plus the dividend on top, up roughly 37% I'm still long term holding here, my exit price is around $75, I think once covid is behind us we will get a lot of volatility in the Oil price as for the first time in a long time as inventories could fall very quickly causing spikes in price
TimeToShine wrote: »
I have positions in the big boys but price volatility isn't as useful as you'd think for the oil majors, they supply "baseload" oil - it's the offshore/arctic explorers who are the marginal price-setters and see huge gains when oil spikes. If you are confident in high volatility going forward and have a decent risk appetite you should be focusing on small-mid cap offshore oil companies with solid revenue bases.
Also for those of you investing in Ireland, I would not bother going with the RDS.B dividend paying stock, RDS.A has the difference premium factored in and when you consider gruesome Irish taxes/FX volatility it is better business just to let the stock ride than count on a dividend.
Exxonmobil just hitting my original target of $75. I think this has got further to go but it has been a fantastic run. I'm up over 130% in 15 months.
Sold 75% of my holdings of XOM today @ $75.71
The rest goes into my long term free holdings
and all these predictions about "the end of oil" that were being made a year ago when the oil price went briefly negative how ridiculous they look now. What about all the big financial funds like blackrock that said they were divesting their oil and gas investments when "big oil" stocks were at their lowest price in decades how stupid they look now. I bet they are quietly getting back into oil again as it is now obvious that we will be using huge quantities of oil and gas for decades to come
The likes of Blackrock say many things but their actions are usually quite different. When everyone was jumping onboard all these growth stocks it was Blackrock and Co who were first to get off and near the top too.
I've started a position in Bp this week. They traded as low as £3.50 on the back of a sell off due to their Russian exposure. My price target for them is £5 in the next 12-18 months
Oil is going up a lot and will do that further. If EU and USA decides to totally cut off from Russian dependence (which I hope will do), the prices will climb up everyday.
Cripes I've made an absolute fortune on XOM. I was kicking myself for not going in stronger back over a year ago, now I'm chuffed but still kicking myself. I missed the BP trade too Chuckie, that one looks another winner.
Don't beat yourself up, you've done well. I originally had a price target of north of $75 for XOM, the War has added another $30.
BP was a nice trade as it's hovering around 450 now after a few weeks.
Oil was a funny situation 18 months ago but wasn't it always obvious to anyone that drove into a petrol station that the world was still badly addicted to Oil and this has come home to roost
Anyways time to be looking for the next "Bargain"