Large Position Review: From Money Pit to Money Maker
The first in a series of in-depth updates on my favorite oil stock ideas.
Oil prices have been extremely volatile recently. Investors appear worried about what the “day after” the Strait of Hormuz reopens could mean for oil prices and energy stock valuations.
In the meantime, we’re still living through the largest oil supply disruption in history, with rapid inventory drawdowns that some pundits and industry executives believe could quickly send oil prices to all-time highs if continued.
With so much uncertainty around the future path of oil prices, I think it’s especially important to focus on oil stocks that can still do well if oil prices go down, while presenting multi-bagger potential upside if oil prices go higher.
In this context, I’m launching a new article series focused on my favorite oil stock ideas that I own in size and consider core positions.
In each article, I’ll walk through what I think the stock could be worth at lower oil prices, while also analyzing the upside I see at higher oil prices. Here is the proved reserve value sensitivity chart for the first idea, which I’m highlighting in this article:
These are the ideas I believe present me with the best combination of downside protection and upside potential. They represent a large portion of the Bison Insights composite tracker, which has been crushing oil stock ETFs like XOP and broader market ETFs like SPY:
In this article series, I’m going to highlight each of these large-position ideas, one at a time. This is the first article in the series, and it is an in-depth update on the company I originally wrote about back in October in From Money Pit to Money Maker.
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.
