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Saturday, November 1, 2014

Christmas gifts coming earlier

We are at the last count-down moment for an important FDA advisory meeting next week for the drug I'm involved in. So super busy at the moment, including evenings and weekends. Just a quick note on something I think you should think about.

Right now anything related to energy is on huge sale. People just dumped whatever they have blindly. This has created a huge opportunity for good oil stocks. I consider them as Christmas gifts for those who know how to invest. One of them is my loved oil company, ConocoPhillips (COP). Briefly, below is the 10 year chart for COP from 2005. It has experienced 4 times of such similar panic selling in the past 10 years but each time it simply comes back. At the moment, it is actually sitting on the 5 year support line. It is paying growing dividends (4% yield as of now), which has increased 400% since 2005 from $0.19 to $0.73 (quarterly). Is this the bottom for COP now? I don't know but do I care? I'm simply buying more when someone is sending me an earlier Christmas gift like that.

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