I do not try to time market to buy securities and keep a fixed schedule to keep buying securities in my Portfolios that I’m comfortable with at regular interval, akin to dollar cost averaging, however, once in a while Mr. Market gets maniac and wants to give me bags of goodies at a discount, who won’t take it? I’d gleefully take them with both my open arms 🙂
Last month of October, I’d fired my ammo on some of the great stocks that I wrote about earlier: GE, HCP, PG, XOM, CVX, PG, ABBV and ARCP being a bold move this month. So, I almost ran out of further ammo to fire this month and was going to take a little breather and load my gun for next round. However, oil prices have been dropping like hot potatoes, almost 30%, and with that energy stocks are tanking in unison and singing songs with same tune, along with drilling and exploration companies for shale oil or natural gas.
While Dow Jones Average (DIA) and S&P 500 indexes (SPY) travelling towards rarefied stratosphere as if a rocket has been fired with cryogenic fuel, while the energy sector is gasping for air. Most energy stocks are down 30% to 50%, providing an excellent opportunity to buy them at a value price and providing good dividend yields, 4-6% range. It does not mean energy stocks cannot go down more and there is a fair chance that oil may still go down further, however, I feel good about nibbling now to build up positions and add even more positions later if the energy stocks were to go down further, getting Santa Claus gifts even before arrival of Christmas to patient investors 😉 and we will be rewarded for that for long time to come.
I’ll be adding positions in Royal Dutch Shell plc (RDS.B), Chevron Corp. (CVX), Exxon Mobile Corp (XOM), ConocoPhillips (COP), BP plc (BP), Suncor Energy Inc. (SU) and Total S.A. (TOT), with BP yielding more than 6%, right now. Due to the significant correction in energy stocks this November, my fingers have itched enough to fire some of remaining ammo in my emergency account, which I rarely do but, I would take the offer of Mr. Market right now.
Full Disclosure: Long BP, XOM, CVX, RDS.B and COP.
What do you think about above energy companies. Are you buying some of them now?
Thanks for reading.