Blogs & Comment

Entry point for oil bet?

Is it too early to start making a buy list for stocks expected to benefit from lower crude-oil prices? Maybe not if Israel attacks Irans nuclear facilities (as a member of Prime Minister Olmert’s cabinet recently warned might happen), the upward spike in oil prices could present an opportunity to buy the stocks at deep bargain levels (from the perspective of someone who believes oil prices cant stay above $135 a barrel forever — see my June 12 post).
Indeed, chances are good the stocks could then be the cheapest theyll get prior to the recovery phase. Declines have gone far already as can be seen from the following price declines over the past year.
FedEx -22% Ford -40% Winnebago -60% AMR Corp. -75%