Blog > Featured Video > Smart money moves out of oil
 | Email This Article Email This Article  | 

Smart money moves out of oil

Posted July 21, 2008

Steve McDonald on TFN 60-Second Buzz

Quietly, hedge funds and company insiders are moving into position to profit from an imminent drop in oil prices. Institutions and private profiteers are loading up on oil refinery shares. Find out where they invest.

by J. Christoph Amberger

Baltimore — (TFN): Analysts and politicians predict oil will trade for $150.. $175… $200… even $500 a barrel by December. But quietly and without much fanfare, insiders and hedge funds are moving to profit from an imminent drop in crude oil prices. One Fed Chairman is even betting $509,000 of his own money on plunging oil prices!

But it’s not just hedge funds that are betting top dollar on a turnaround in crude oil prices. Refinery executives are buying more of their own stock than at any time in the past eight years!

Oil and gas processors have experienced a 40-percent decline in share prices since January — the largest drop since 1995 — after crude oil prices gained 43 percent down.

Not surprising when you consider that profits at U.S. refiners plummeted an incredible 98% in the first quarter after companies were unable to make up for higher crude prices with higher gasoline, heating oil and jet fuel prices.

But analyzing the money flow indicates that something’s about to change in a big way:

You see, chief executive officers, directors and other senior officials had been dumping shares like there was no tomorrow earlier this year. After all, they knew that if oil prices were heading up, their margins would go down.

______________________

Three Recession-Buster Stocks to see you through the next 6 months:

This $5 company has a lock on the key technology in China – and could generate gains of over 1,000%… Insiders are loading up on this battered contrarian energy play that could go up as much as 75% by November… And his tiny biotech holds the secret to crucial early detection of a debilitating disease AND could triple in value by next year. Get our FREE special report…

_____________________

But suddenly, things have changed: Executives at 10 refining companies gobbled up $2 million of their own companies’ shares in May…. that’s twice the amount they sold!

That’s a dramatic change in their buying behavior. Now… insider buying typically is a good indicator. But betting on lower oil prices alone would not be sufficient for us to recommend this stock… even though right now, you can buy it for under $14.

But the thing is, the stock price of this company has been depressed artificially since February due to an incident at one of its plants that knocked out part of its capacity. An estimated 70% of the company’s consolidated earnings was produced by this very facility in 2007. It is now working at 50% of capacity… but the company estimates it will be back online in late July.

Plus, they’re just completing the acquisition of another facility, which will increase its output by another 50%.

TFN’s Hot Stock Confidential has just issued a special report on this rebound opportunity. It’s yours free for clicking on this link. You can also get to it by simply clicking on this video screen.
****Make sure you sign up for our FREE TFN News Feed for breaking news, special reports and new financial videos. Sign up through your favorite reader here. Or, if you prefer, have the feed delivered to your email.

Related Articles


Posted by J. Christoph Amberger · Filed Under Featured Video, Oil and Energy, Podcast, Videos 

Comments

close Reblog this comment
Powered by Disqus · Learn more
blog comments powered by Disqus