Go Baby Go – Buy Energy Stocks!

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.

10 thoughts on “Go Baby Go – Buy Energy Stocks!

    1. Hi DH,

      Lookit. I’m loving energy companies now and COP is an excellent big energy company along with other biggies: XOM, BP and RDS.B. We will be happy shareholders.

      You too enjoy your weekend!

      Best wishes.

    1. Hi SAD,

      It is a great time to be picking up energy stocks. We will be happy campers 🙂

      Thanks for stopping by!

      Enjoy your weekend.

  1. Each of those names are making the rounds among the DGI blogosphere and with good reason. All those names are on my watchlist and I just added BBL too a few days ago after its price move brought it towards its 52 week low. Energy is looking very compelliing these days and I might be adding some more myself in the coming days. I still am curious to see how December will start out and see where oil heads in the next week or two. Thanks for sharing.

    1. Hi DH,

      Yep. No wonder that DGI community is excited about energy stocks like a red hot iron that is ready for a strike. Most of the energy stocks are close to 52 weeks low and have become good value play, though, there is some downside still to play out.

      I try to avoid commodity, mining, gold or some exotic metal stocks like GLD, SLW, PAL, LIT, NINI, XME, etc. due to cyclical nature and wild fluctuations, however, BBL is a good bet and currently has a juicy dividend yield of more than 5% after drop last week. It’s in my watch list as well and I’m considering to add this one.

      Adding energy stocks now will be a good move, my friend.

      Thanks for stopping by!

      Enjoy your weekend.

    1. Hi AG,

      I took some risk in ARCP and we’ll see how it will work out for us.

      Yeah! Energy stocks are great buys now a days.

      Thanks for stopping by!

      Cheers.

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