In the 90’s, everyone and their mother talked about investing in the stock market and technology stocks. Again, in the 90’s and the turn of the millennium, taxi drivers and barbers started talking about flipping houses for a living. Now, the talk is the high price of oil and how to profit from it. I say…. See Ya!
As a contrarian-value investor, I hate crowds. Each and everyday, it seems as more and more people are talking about the price of oil and how high it will go. As a result, CNBC has started to display the price of crude on the lower right corner. Thursday, May 22, they aired a special on crude and who is the blame and canceled Fast Money and Mad Money. This is only a sample of the media headlines. Thus, I am saying goodbye to two stocks that are related to oil. I bought both Pacer International (PACR) and Nabors Industries (NBR) when they appeared on the magic formula list. After doing some research, I thought both companies represented great value. Now, both stocks, sit at 90-95% of my estimated fair value and have to say good bye. I wouldn’t be surprised if both stocks rise after my sell orders are placed, but I do not care. I realized about a 50% gain on both stocks, I will let others deal with the burst.
Disclaimer: I put in orders to sell when the markets open next week
If you enjoyed this post, make sure you subscribe to my RSS feed!
Loading ...
{ 0 comments… add one now }