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  1. #1
    Master Member vinayakm's Avatar

    Hot Oil/Big Oil Stocks !!!

    I am really bullish on big oil stocks and oil in the long term, but this thread is meant for daily fluctuations. This completes our discussion on major commodities including gold and silver: http://forums.binaryoptionsthatsuck....traday-Trading

    I know I already have an XOM thread and this will remain as XOM is such a big deal: http://forums.binaryoptionsthatsuck....356-XOM-Thread

    I look forward to discussing the market developments as it relates to oil/oil stocks.

  2. #2
    Master Member vinayakm's Avatar
    TOTAL SA: Worth a Monthly Call?

    TOT is currently trading at $50.49 and extensive fundamental analysis reveals that the stock is undervalued. The profitability ratios are not too bad and even the near term price action is encouraging for bulls.

    TOT has generally better return on sales ratios than BP PLC (BP) and Royal Dutch Shell (RDS.A) over the last five years. Nonetheless, it lags behind industry leaders Exxon Mobil Corporation (XOM) and Chevron Corporation (CVX).

    Total SA continues to explore for new sources of oil with tremendous success. Binary option traders should keep a watchful eye on the company's dividend behavior over the next year and any big developments that may come out of its joint-venture with Qatar Petroleum.

  3. #3
    Rookie Member
    Great thread vinayakm!

    I like to trade oil companies, but have not any clear understanding what drives the most their price changes. I checked that TOT performs worse than XOM and CVX in the last five years. You said that it has better return on sales ratios than BP PLC (BP) and Royal Dutch Shell (RDS.A) over the last five years but why that doesn’t reflect their price. It is French company does this affect their performance some way?

  4. #4
    Master Member vinayakm's Avatar
    Hey philldot,

    The oil companies that you have mentioned are all major integrated ones and the single most thing that drives their stock price is their activities upstream and downstream. Specifically, how great have they been at finding new sources of oil and how their exploration efforts have brought profits. I talked about the joint-venture with Qatar Petroleum for TOT and this is a big factor. There are also downstream efforts like the marketing efforts to the end user.

    Contrary to popular belief, big oil stocks are at the mercy of oil prices and these prices dictate how a company will perform.

    The return on sales ratio is just one aspect that you need to look at. TOT does have a higher stock price than BP, though.

    Being a French company does affect their performance with the high corporate tax prevalent there. Not to mention, the recession and the debt problems.

    But it is more to do with TOT's market cap which is much smaller than the other big oil stocks mentioned.

    Regards,

    Vinayak

  5. #5
    Veteran Member uj.forex's Avatar
    could u please tell us critical levels of Oil (WTI)... do u see it crossing 100 mark within 1 month ?

  6. #6
    Specialist Member LesterK's Avatar
    Quote Originally Posted by vinayakm View Post
    Hey philldot,

    Being a French company does affect their performance with the high corporate tax prevalent there. Not to mention, the recession and the debt problems.

    But it is more to do with TOT's market cap which is much smaller than the other big oil stocks mentioned.

    Regards,

    Vinayak
    The country of residence really affects the overall performance of TOT, vinayakm! The corporate taxation in France is really heavy and there is no way to not affect TOT, even if this company moved some of its operations offshore.

    To your question uj, I would like to tell you that WTI could easily cross the 100 level but I don't think it will be in the next 3-4 weeks.

  7. #7
    Master Member vinayakm's Avatar
    Quote Originally Posted by uj.forex View Post
    could u please tell us critical levels of Oil (WTI)... do u see it crossing 100 mark within 1 month ?
    Good question. I think supply and demand are having little to do with oil prices. Wall Street and Washington shoot up the prices with the futures market.

    Nonetheless, there has been some renewed downside pressure as of late, but with the strengthening US economy as we head into summer there should be a lot more demand.

    There is already increased demand from Asia. To answer your question, I believe that oil (WTI) will indeed cross the 100 mark in a month's time.

  8. #8
    Specialist Member marvel's Avatar
    I also think that it will cross the 100 mark most probably soon than latter and this will be only the beginning of the big oil appreciation in the next months and years. The oils supply will always be limited and the demand will go straight up, no matter if we have other economic crisis or not. Especially big will be the demand from China, India and all other developing countries which still use a small fraction of oil as compared to the developed nations.

  9. #9
    Legendry Member milos's Avatar
    Oil price followed the general increase in commodity price caused by falling dollar.During yesterday's price peaked in the last six months.Growth was stopped during the Asian session,during which the price rose 0.12% . The price of crude oil has fluctuated mainly in the morning.After yesterday's three week maximum growth rate has stabilize between $96 and $97 per barrel.Today is forecast to report on stocks in the United States published by American Petroleum Institute.Economist expect a drop of 0.36 millions barrel.The government report tomorrow may also show that inventories fell and that of 0.4 millions barrels.America is the world's largest consumer and covers 22% of global demand.

  10. #10
    Veteran Member uj.forex's Avatar
    yeah, i think that it may cross 100 level mark coz economy is doing good and the demand for construction, transportation, and other sectors is increasing... plus, the tornadoes and such calamities often tend to increase the demand for the construction and other developments, so the demand for oil would be stable or should i say increase by the time...

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