Thomas Smicklas who writes a very interesting blog recently posted the
following article on Seeking Alpha. Many analysts right now are trying to
position their clients "if" oil keeps going up.
Here's what Thomas wrote:
"I had been musing over some stock picks if oil rose to around the
$150.00/barrel mark. Credit Suisse First Boston very recently distributed a
thorough analysis of precisely this idea. I defer to their expertise. CSFB also
has a superb Alternative Energy stable of analysts worldwide.
I believe that they are on top of the energy scenario from a multitude of
perspectives.
Here are their selections:
* Complete Production Services (CPX)
* Patterson-UTI Energy (PTEN)
* Noble Energy (NE)
* Conoco-Phillips (COP)
* Denbury Resources (DNR)
* Plains Exploration and Production (PXP)
* Venoco, Inc. (VQ)
* Encore Acquisition (EAC)
* Whiting Petroleum (WLL)
* First Solar (FSLR)
* Consol Energy (CNX)
* Air Products (APD)
* Fluor (FLR)
* Chicago Bridge and Iron (CBI)
* Archer Daniels Midland (ADM)
* Bunge (BG)
* TJX (TJX)
* Waddell and Reed (WDR)
* Brookfield Properties (BPO)
* Intercontinental Exchange (ICE)
* Cognizant (CTSH)
This list is a start. Do appropriate research and see what fits into your
portfolio."
Well said but something jumps out at me from reading this list. If oil moved
sharply higher wouldn't that be partly due to the weakening dollar and wouldn't
that be inflationary?
The answer of course is a double "yes", so why did the CSFB analyst omit gold
and silver investments like Barrick (NYSE:ABX) , Yamana (NYSE:AUY) or Silver
Wheaton (NYSE:SLW)? At least he could have listed to ETFs like SLV and GLD.
So we see that mainstream, Wall Street analysts are not manic and wild about
gold and silver yet, and that is another smart reason to begin loading up before
the big move to the upside.
It won't be $150 oil that will impress me. It will be the $2,000 gold and the
$50 silver that will have me popping the cork on a great bottle of Oregon Pinot
Noir. Yes, do your own due diligence and think independently. Those who see the
trends BEFORE the masses do will be rewarded in a big way.
