The Oil Kaboom!

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It’s easy to get caught up in the latest “crazy “or “hot stock”, whether it be a Twitter (TWTR), Groupon (GRPN) (remember them?) or Uber, should they go public? When and what to buy and sell, getting caught up in the hype, can be very costly.

I look for opportunity where the market has lost hope, segments that are out of favor, where it’s NOT “cool” to invest.

This ride is about the free fall of oil prices.  As a direct effect, every company in the industry, whether deserved or not, will fall with the hype. The question; has the market taken value of companies too far? Creating opportunity for those willing to wait?

Yes it has, companies like BP and ExxonMobile (XOM) are going nowhere, yet the price has dropped to below intrinsic value, this creates opportunity for long term positions, also take overs, Mergers and acquisitions, like Baker Hughes (BHI) and Halliburton (HAL).

 

Tarek Salib; Managing Partner – Vanquish Capital Management – A long/short value fund

Vanquish Capital Management is Long: BP, XOM, BHI

Vanquish Capital Management holds no positions: GRPN, TWTR, HAL

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