Friday, December 19, 2014

Trading Around the Oil

After my position in AREX at 8.05 fell quickly to 7.27, I exited at a loss.  I reentered the position last night at 6.01 with a larger position.  I also added WREX to the list of oil stocks that are trading at low prices.  A lot of the companies I'm looking at are not as highly levered and earnings will definitely take a hit if oil prices stay low, so p/e probably doesn't matter at all here, as some oil stocks you're seeing current pe's of 2, but if you factor the earnings drop probably looking at forward pe's of 12+.  I do think low pb value and low leverage may work well for screening oil stocks.  I may add more oil stocks tonight.