Five Compelling Oil Stocks
A review of five of my largest oil stock holdings
I’ve been asked a lot recently about my thoughts on the recent oil price volatility and what I’m focused on here. With my commodity price short-term crystal ball broken, I’m focusing on the investment ideas that I think can do well in a lower oil price environment ($60+ WTI oil) and extremely well in a higher price environment ($80+ oil).
The first article in this series can be read here: Large Position Review: From Money Pit to Money Maker. You can see the upside potential and downside potential here in this net asset value sensitivity chart for this company:
The second article in this series can be read here: Large Position Review: Undervalued Oil Producer Buying Back Stock and Paying Off Debt. Similar to the above, here is the net asset value sensitivity chart for this company - note the huge upside at higher oil prices:
What makes these ideas unique is that they are smaller, overlooked, and misunderstood by the market. This is why they trade so cheaply and offer a potential asymmetric setup compared to the more “traditional,” larger oil and gas stocks.
In this article, I’ll quickly review the next three ideas that I will write about in this series over the coming weeks. These are the ideas that make up a large portion of the Bison Insights composite tracker, which has meaningfully outperformed the broader energy market since publication:
Disclaimer: This is for informational and educational purposes only. This is not an offer, solicitation, or investment recommendation. Please consult an advisor and do your own diligence. Past performance is not indicative of future results.
