Hi Stackers, With the world economy firing in three cylinders (Europe, Asia and USA), I believe we are at the cusp of another Oil and Gas boom. So looking forward 3 to 5 year outlook, who are the small caps. Looking for companies that will double or triple or go bust trying. Some I am aware of Senex Energy - ASX code: SYX Beach Energy - ASX code: BPT Copper Energy - ASX code: COE Any others you are looking at? Lithium stocks have been done to death, but there are some other thread that VRS is updating if you are interested.
Hi IPv6 I somewhat agree. I had oil&gas as one of the sectors to watch for 2018. I agree about lithium stocks as well, and other 2017 hyped sectors like blockchain stocks, cannabis, cobalt etc. There was too much easy money floating around in these stocks and their charts are getting serious damage to them now. Many of the ASX oil&gas stocks done quite well in last 6 months, riding on back on crude oil price making a 3 year high. There's also been a Takeover battle going on for AWE at the moment bringing more attention to the sector again. The immediate downside is that crude oil price (and oil&gas stocks like BPT) broke their 6-month long trending Support lines last week. There is a good chance now that oil will go and test US$56.80 area. If it does, it would actually be quite healthy and make the current bull run in oil prices more sustainable. In terms of smaller oil&gas stocks (excl majors like WPL, STO, ORG, OSH): * BPT, SXY, COE some of the bigger mid-tier ones in Australia. * COI, BUL, GLL (Qld gas explorers). BRU in W.A. * mostly overseas: HZN, EXR, KAR, ATS, ELK and theres a tonne of other small ones that have burnt investors trying to find big deposits in years gone by... Given volatility in markets over last couple of weeks, there is a good chance some of these stock may get cheaper yet.
Not so sure about their recent doings, but through the 80s and 90s Beach were notorious for sucking in capital and failing to deliver - they were a small operation with no geologists, no production and no wildcats. That info's obviously out of date but worth bearing in mind - they did things like grabbing money on the back of a rise in oil price then diluted the share values to keep going and suck in another round of funding backed with promises. Personally I'd steer well clear of Australian oil & gas exploration companies unless you can make head or tail of a drilling report (such as PEX) and have some sort of understanding of the plays the particular company is trying to prove up...actually I'd tend to avoid the upstream Aussie stuff all together, even coal seam gas in the Surat and Bowen basins which hasn't proven to have sufficient legs for investors. A long shot might be investing in a company that's taking on the ageing Bass Strait oil fields, at least you know the oil's in place and it's just a question of who can extract it for a reasonable profit and I'm pretty sure there were farm-ins on offer down there not so long ago. On the other hand, if you really like long odds, perhaps there's someone out there still pushing PNG. Good luck!
I have a simple strategy on investment. 50% Australian fund managers. 30% direct international fund managers, (not international funds of Australian managers) 20% is a mixed bag, that varies between gold and small caps. I bought into sxy, coe and bpt, early last year and they are doing well, so now I’m considering taking some profit and buying more riskier small caps, in oil and gas. By the way I am not dismissing lithium, far from it, I’ve bought ore, pls and gxy couple years ago and I’m betting one of these will become a major player and others will be acquired. PNG is little too much risk for me. Got burned ten years ago.
