It's Finally Time to Look at Oil Stocks

Oil companies have been doing virtually everything wrong since the start of the bust cycle in 2014. It's been the one thing that oil traders could rely upon. Now we see more signs in the second-quarter reports from oil companies that they are zigging when they should be zagging. Their incompetence could work out to be a tremendous opportunity for investors.

In 2014 and throughout 2015, oil companies didn't plan well for an extended bust, dropping production as little as possible, continuing to increase leverage to pay dividends and selling assets at undervalued prices. They managed to keep their stock prices relatively steady instead of seeing a full-scale collapse that should have been expected in this kind of downturn, but the long-term has seen their profits wither and their prospects grow increasingly worse -- they are relying on their prime production acreage to keep them alive at seriously depressed oil prices. Where premium acreage in the Permian and Eagle Ford shale plays should deliver to them $30, $40 or even $50 dollars a barrel of profits above breakeven prices, they've been lucky to manage $10....379 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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