Opportunistic Plays in the Energy Sector
I haven't talked about energy stocks in while -- I've been hunting elsewhere. Plus, since the price of oil is at current low levels, you would expect to find little value across the industry, unless something specific is going on with a company. That's appears to be case with a couple of businesses in the sector.
The first is your classic spinoff red-headed stepchild textbook selloff: a widget company spins off a division that does something besides making widgets. Because shareholders invested a widget maker, they want nothing to do with the spun-out entity, so they sell regardless of price and value. Such is the case with Phillips 66 (PSX), the refining business that was spun out recently from oil giant ConocoPhillips (COP). Shares in Phillips 66, after being spun out at $37 a share last week, trade for $30. Because investors are unsure of what to expect, the reaction is to sell first and research later....232 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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