Oil’s Spillover Effect On Stocks And Some Potential Investment Plays
Noted commodities expert Paul Shankey, of Wolfe Research was interviewed on CNBC’s Smart Money last evening about the outlook for oil, what he sees in the mergers and acquisition’s sector; and, some potential stock investment plays for investors/traders who want to take some chances on companies during oil’s freefall. Mr. Shankey noted that there are bargains to be had in this sector — as investors should focus on companies that can weather this storm in collapsing prices; companies with solid balance sheets, well managed, and poised to take advantage of a very unsettling marketplace.
Regarding oil’s spillover effects, Reuters News Service reduced its 4th quarter/2014 earnings outlook for the S and P, down from its previous estimate of +11.4 percent; to now, just +4 percent — as oil’s collapse weighs on the index. Oil companies/revenue make up 30 percent of the S and P 500 Index. Oil is falling again this morning, with Brent Crude falling $1.73, or -3.65 percent to $45.70; while West Texas Intermediate is trading lower by $1.63, or -3.54 percent, to $44.44.
Shankey’s Top Oil Plays — In No Particular Order Were:
EOG, Hess, Conoco Philips. and Devon Energy were all highlighted as top oil picks in 2015 by Wolfe Securities Paul Shankey. If you decided to take a bite — make sure you do your own due diligence. V/R, RCP