oil prices

Low Oil and Copper Prices Tell Us Stock Market in Trouble

By Wednesday, November 12, 2014

Dangers of Low Oil and Copper PricesTo see where the global economy is headed, I follow the prices of oil and copper. The prices of these commodities tell us about demand in the global economy. If the prices of oil and copper are rising, it means there’s prosperity. If the opposite occurs, it means industry (factories) is not busy and that a global economic slowdown is not far away.

With this in mind, below is the … Read More

How the Markets Will Close Out 2014

By Friday, October 31, 2014

Markets Will Close Out 2014Credit card companies are some of the best indicators in the global economy. Visa Inc. (V) just reported a pretty decent quarter. While earnings were down comparatively due to a one-time charge, adjusted earnings handily beat consensus.

The company’s fiscal fourth quarter came in solid, with growth of 10% on a constant dollar basis to $3.2 billion compared to the same quarter last year.

Recently, the company increased its quarterly … Read More

Two Companies in the “Buy Zone” on Weaker Oil?

By Wednesday, October 29, 2014

How Spot Prices Could Affect Your Oil PicksIt really is quite amazing the amount that spot oil prices have dropped. Naturally, in a lot of areas, the price of gasoline has not dropped the same percentage.

Lower oil prices help a lot of industries. The railroads and airlines, for instance, should show a material gain in earnings in the fourth quarter due to the drop in fuel costs.

It’s not a game-changer for oil producers just yet, … Read More

Crushed Oil Sector a Profitable Opportunity?

By Friday, October 24, 2014

Crushed Oil Sector

The big news so far this earnings season isn’t corporate financial results but the price of oil, which continues to be under pressure.

Domestic production has finally caught up to spot prices and combined with reduced expectations for the global economy, oil prices continue to be vulnerable.

Resource investing is inherently volatile; risk related to commodity-based investing is always higher. But as oil prices have given oil stocks a well-deserved … Read More

Why This Company Is a Consistent Winner for Investors

By Monday, October 20, 2014

One Company That’s Proven It Can Adapt to the MarketplaceAmid all the turmoil in capital markets, I’m reminded of all the good corporate earnings being released.

Of course, the stock market is a system of discounting future business conditions and the recent sell-off has been pronounced, but stocks have come so far over the last several years. If the catalysts were deflationary pressures among oil prices and global economic activity, a little haircut in share prices is well deserved…. Read More

Plunging Oil Prices Next Big Investment Opportunity?

By Friday, October 17, 2014

Declining Oil Prices the Market’s CatalystWhile corporate earnings continue to come in solid, stocks continue to be sold.

It’s not all the time that stocks follow oil prices, but they certainly have this time around and the selling momentum has gained on deflationary pressures from producer prices to declining expectations for global economic growth.

And the selling is happening to companies that beat consensus with their earnings, like J.B. Hunt Transport Services, Inc. (JBHT), which … Read More

Why Stock Prices Will Continue to Fall

By Wednesday, October 15, 2014

Stock Prices Will Continue to FallNow that the Dow Jones Industrial Average has fallen 1,035 points (six percent) from its mid-September peak, the question investors are asking is “how far will she go?” For small-cap investors, the drama is greater, as the Russell 2000 Index has fallen 12.5% from its July peak.

Since 2009, every market pullback presented investors with an opportunity to get back into stocks at discounted prices. Even some editors here at … Read More

Why the Old School Dow Theory Still Applies

By Friday, September 19, 2014

The Most Important Stocks to FollowGetting a sense of where stocks are going to go in the year ahead is always difficult with the major indices at their all-time highs.

The fundamental backdrop is still very favorable for equities. While the Federal Reserve has put off raising interest rates for the near future, the cost of capital, especially for corporations, remains extremely low. And corporate balance sheets remain in excellent condition with strong cash positions … Read More

My Top Value Play in Bakken Oil

By Monday, September 15, 2014

Top Value Play in Bakken OilThe weakness in oil prices was pretty sudden and has changed the financial dynamics for many producers. Typically, weaker oil prices are slow to translate into lower prices at the pumps.

Domestic junior oil stocks have been hot commodities until recently. Many of the market’s best growth stocks in this sector continue to be expensively priced and finding value has been a difficult endeavor.

One company we’ve considered before in … Read More

Why Are Oil Prices Collapsing?

By Monday, September 8, 2014

Global Economy Just Getting WeakerOil plays a critical role in economic growth as oil is used in a variety of industries. In times of economic growth, oil prices rise. When the economy is soft, or getting soft, oil prices fall as demand for oil wanes.

Over the past two months, oil prices have collapsed for the simple reason that the global economy is getting weak.

The chart below shows the steep sell-off in oil … Read More